Accounts receivable

Terminoogies:

• Receivables

• Trade receivables

• Non trade receivables

• Notes receivable

• Loan receivables

Classification of trade receivable

Non trade receivables

• Advances to or receivable from shareholders, director, officeer, or employess

• Advances to affiliates

• Advances to supplier

• Subscriptions receivable

• Special deposits

• Accrued income

• Claims receivable

Customer credit balances

Initial measurement and subsequent measurement

Net realizaable value of trade receibale deduct the following

• Allowance for freight charge

• Allowance for saes return

• Allowance for sales discount

• Allowance for doubtful account

Terminologies:

FOB destination

FOB shipping point

Freightcollect

Freight prepaid

Methods of recording credit sales

• Gross method

• Net method

Doubtful accounts in the income statement

• Distribution cost

• Administrative expense

ESTIMATION F DOUBTFUL ACCOUNTS APPLICATION HAH