《会计英语》Accounting04创新.ppt

* * * * * Exercise 4-5: Dr： Trading securities 4850 (12.1/8*400) Cr： Cash 4850 Cost principle is applied. (1)Assume that later sold the common share at $5800,what is the entry? (2) Assume that later sold the common share at $3580,what is the entry? * (1)Dr:Cash 5800 Cr:Trading securities 4850 Gain on sale of temporary investment 950 (2)Dr:Cash 3580 Loss on sale of temporary investment 1270 Cr:Trading securities 4850 * Aging of Receivables Example The allowance account is adjusted to this $143,000 balance: Assume that the account currently has a credit balance of $100,000. What is the adjustment? * Uncollectible Account Bad debt Expense 43,000 Allowance for doubtful accounts 43,000 To record allowance for uncollectibles What if the account had a debit balance of $1,000? Aging of Receivables * Allowance for Uncollectible Adjustment 1,000 144,000 Adjusted balance 143,000 Aging of Receivables * Comparing the Percentage of Sales and Aging Methods Allowance Method Percent of Sales Method Aging of Accounts Receivable Method Adjusts Allowance for Uncollectible Accounts Adjusts Allowance for Uncollectible Accounts BY TO UNCOLLECTIBLE ACCOUNT EXPENSE UNCOLLECTIBLE ACCOUNTS RECEIVABLE Amount of Amount of * Uncollectible AccountsSummary % of Receivables Emphasis on Realizable Value Accts. Rec. All. for Doubtful Accts. Aging of Receivables Emphasis on Realizable Value Accts. Rec. All. for Doubtful Accts. Balance Sheet Focus Balance Sheet Focus % of Sales Emphasis on Matching Sales Uncoll. Accts. Exp. Income Statement Focus * Writing OffUncollectible Accounts What happens when it