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nontrade receivable
arises from transactions other than the normal sale or merchandise or services
trade receivable
created by a credit sale on open account
current receivable
due to be paid within one year
noncurrent receiveable
long term in nature
adjusting entry for bad debt expense
bad debt expense xx
allowance for doubtful acc (XA) xx
journal entry for customer write off
allowance for doubtful acc xx
acc receivable xx
specific identification inventory
tracking for expensive unique items
when prices are rising over time, which inventory method reports the highest prices?
FIFO, because the lower cost (old) inventories
perpetual inventory system
update inventory numbers with each sale, we create two journal entries
cash. xx
sales revenue xx
cost of goods sold xx
inventory xx
periodic inventory system
used by smaller companies, only record a sales journal entry w each sale
determine COGS once @ end of period
cash. xx
sales revenue xx
COGS equation
beg bal + purchases - end bal
declining cost
highest net income
highest inventory
LIFO
rising cost
highest net income
highest inventory
FIFO
assets
economic resource (owned by the company) that are expected to provide future benefits to the company
recorded on balance sheet
expenses
resources that the company used to earn revenues during the period
increases future benefit
recorded on the income statement
capitialized
when we record a particular amount as a part of the cost of an asset (instead of an expense)
brings future benefit
book value
remaining value that is not yet depreciated
c
