AccountingPrinciplesAccountingforReceivables幻灯片.pptxVIP

;;;;Three accounting issues: Recognizing accounts receivable. Valuing accounts receivable. Disposing of accounts receivable.;Illustration: Assume that Jordache Co. on July 1, 2017, sells merchandise on account to Polo Company for $1,000 terms 2/10, n/30. Prepare the journal entry to record this transaction on the books of Jordache Co.;Illustration: On July 5, Polo returns merchandise worth $100 to Jordache Co. ;THE MISSING CONTROL Segregation of duties. The foundation should not have allowed an accounts receivable clerk, whose job was to record receivables, to also handle cash, record cash, make deposits, and especially prepare the bank reconciliation. Independent internal verification. The controller was supposed to perform a thorough review of the bank reconciliation. Because he did not, he was terminated from his position.;On May 1, Wilton sold merchandise on account to Bates for $50,000 terms 3/15, net 45. On May 4, Bates returns merchandise with a sales price of $2,000. On May 16, Wilton receives payment from Bates for the balance due. Prepare journal entries to record the May transactions on Wilton’s books.;Valuing Accounts Receivables;Alternate Presentation;;;;;;;;;;Illustration: Assume that Warden Co. writes off M. E. Doran’s $200 balance as uncollectible on December 12. Warden’s entry is:;ALLOWANCE METHOD FOR UNCOLLECTIBLE ACCOUNTS;Illustration: Hampson Furniture has credit sales of $1,200,000 in 2017, of which $200,000 remains uncollected at December 31. The credit manager estimates that $12,000 of these sales will prove uncollectible.;Illustration 9-3 Presentation of allowance for doubtful accounts;Illustration: The vice-president of finance of Hampson Furniture on March 1, 2018, authorizes a write-off of the $500 balance owed by R. A. Ware. The entry to record the write-off is:; 1;Illustration 9-6 Comparison of bases for estimating uncollectibles;Management estimates what percentage of credit sales will be uncollectible. This percentage