会计英语新第十单元课件.pptVIP

Unit Ten Accounts Receivable Learning Objectives: 1 what is the “allowance for doubtful accounts”? 2 how to estimate uncollectible accounts expense? 3 how to make accounting entries 4 describe the internal control for accounts receivable briefly. “allowance for doubtful accounts” used as a contra-asset account or a valuation account, it has a credit balance, which is offset against the asset account receivable to produce the proper balance sheet value for this asset. 1 “balance sheet approach” Question: “How large a valuation allowance is needed to reduce our receivables to realizable value?” “aging the accounts receivable”, the longer past due on account receivable becomes, the great the likelihood that it will not be collected in full. uncollectible accounts = percentage of probable expense × amount apply to : annual statements (reliable) 2 “income statement approach” Question: “How much uncollectible accounts expense is associated with this year’s volume of sales?” “estimating uncollectible accounts as a percentage of net sales” uncollectible accounts = net sales × percentage apply to : monthly statements; internal reports 三 make accounting entries: 1 estimated: Dr. Bad Debts Expense Cr. Allowance for Doubtful accounts 2 write off: Dr. Allowance for Doubtful accounts Cr. Accounts Receivable 3 recovery: Dr. Accounts Receivable Cr. Allowance for Doubtful accounts Dr. Cash Cr. Accounts Receivable 四 internal control Principle ------- proper segregation of duties. (employees) 1 maintain accounts receivable-----access to cash receipts 2 handle cash receipts-----records of receivables 3 records of receivables-----issue credit memos or write off receivables 4 important documents: serially numbered * *