Task Book Information Receivable amount due from individuals and companies. Claims that are expected to be collected in cash Types: Accounts Receivable - Amounts customers owe on account. Notes receivable-Written promise for amounts to be received, normally requires the collection of interest Recognizing a receivable. Returns and sales discounts. Know Know Valuing a receivable 12 methods for uncollectable accounts) 1) Direct Write-off method for uncollectable accounts: write off to bad debt expense because it shows the actual loss. Not acceptable for financial purposes if it is a significant amount. 2) Allowance Method for uncollectable accounts: estimating uncollectable accounts at the end of each period. GAAP requires this method when debts are material a. Companies estimate uncollectible receivable b. Adjusting entry at the end of the period (debit Bad Debt Expense, Credit Allowance for Doubtful Accounts) c Writing off a specific account (debit Allowance for Doubtful Accounts a contra account credit Accounts Receivable) Do A credit manager at Hampton Co. estimates that $12.000 of the $200.000 open receivable will be uncollectable. What is the journal entry using the allowance method? Assume that the VP of Hampton Co. authorizes a write-off of the $500 balance owed by Ware Co. Know Recovery of an uncollectible account when a company collects from a customer after it has written it off as uncollectible Do Assume that on July 1, Ware Co. pays the $500 that Hampton had written off on March 1: BIUX, x' A..A Paragraph Styles Font Know , the dut entrar y what the time September and the for the end of the Know Bonde interest bearing vent e mente ved by a a secured bod What is the rence between stured and e to search Task Book Information Receivable amount due from individuals and companies. Claims that are expected to be collected in cash Types: Accounts Receivable - Amounts customers owe on account. Notes receivable-Written promise for amounts to be received, normally requires the collection of interest Recognizing a receivable. Returns and sales discounts. Know Know Valuing a receivable 12 methods for uncollectable accounts) 1) Direct Write-off method for uncollectable accounts: write off to bad debt expense because it shows the actual loss. Not acceptable for financial purposes if it is a significant amount. 2) Allowance Method for uncollectable accounts: estimating uncollectable accounts at the end of each period. GAAP requires this method when debts are material a. Companies estimate uncollectible receivable b. Adjusting entry at the end of the period (debit Bad Debt Expense, Credit Allowance for Doubtful Accounts) c Writing off a specific account (debit Allowance for Doubtful Accounts a contra account credit Accounts Receivable) Do A credit manager at Hampton Co. estimates that $12.000 of the $200.000 open receivable will be uncollectable. What is the journal entry using the allowance method? Assume that the VP of Hampton Co. authorizes a write-off of the $500 balance owed by Ware Co. Know Recovery of an uncollectible account when a company collects from a customer after it has written it off as uncollectible Do Assume that on July 1, Ware Co. pays the $500 that Hampton had written off on March 1: BIUX, x' A..A Paragraph Styles Font Know , the dut entrar y what the time September and the for the end of the Know Bonde interest bearing vent e mente ved by a a secured bod What is the rence between stured and e to search
