chp 8 - cash & receivables

most liquid current assets

what are cash equivalents

options for reporting cash equivalents

restricted cash

bank overdrafts

bank overdraft example

bank reconciliation: cash balance per books

bank reconciliation: cash balance per bank

what are receivables

non-trade receivables

trade receivables

a/r (recognition and valuation)

trade discounts

sales discounts

example of sales discounts (gross vs net method)

sales discounts & sales discounts forfeited accounts

net method vs gross method

sales returns & allowances when customers return goods

sales returns & allowances if estimating before hand

what kind of entry is sales return and allowances

allowance for doubtful accounts (what are they and 2 methods to record)

direct write off method

allowance method

when a specific non-paying customer is identified, these journal entries are recorded

In 20x8, the customer whose account balance was written off, is able to pay $200. At year-end 20x8, the company determines the ending balance required in the ADA account should total $6,150. Record the journal entries to reflect the above activity.

notes receivable

besides lending, notes also result from the following:

valuation on the balance sheet

example of stated rate = market rate

stated rate =/= market rate (non-interest bearing note)

effective interest amortization of discount/premium

example of effective interest amort of discount/premium

stated rate =/= market rate (interest bearing note)

example of interest bearing note

stated rate = market rate (installment notes with fixed payments)

example of installment loan

measurement on the b/s for n/r

disposition of accounts and n/r

secured borrowing

sale of receivables

sale without recourse

sale with recourse