财务会计英语ch08.pptx

Chapter 8;Some of the action has been automated, so click the mouse when you see this lightning bolt in the lower right-hand corner of the screen. You can point and click anywhere on the screen.;;5. Journalize the entries for the direct write-off of uncollectible receivables.;;; Uncollectible Receivables; Uncollectible Receivables; The Allowance Method ;The net amount that is expected to be collected, $101,000 ($105,000 – $4,000), is called the net realizable value (NRV).;The adjusting entry fills the bucket.;Writing off accounts empties the bucket.;On January 21, John Parker’s account totaling $610 is considered to be uncollectible.;On June 10, the written-off account is collected. ;A second entry is made to record receipt of the cash.;;;;;;;;;; The Direct Write-Off Method ;In November, D. L. Ross remits a check for $420 in payment of his account.;A second entry is needed to record receipt of the cash.;Notes Receivable;a specific amount of money (principal) to a specific person or company (payee) at a specific place on a specific date or upon demand plus interest at a specific percentage of the principal (face) amount per year;;Total days in note 90 days Number of days in March 31 Issue date of note March 16 Remaining days in March –15 days 75 days Number of days in April –30 days 45 days Number of days in May –31 days Residual days in June 14 days;Notes Receivable;Received a $6,000, 12%, 30-day note dated November 21, 2006 in settlement of the account of W. A Bunn Co.;;Accounting for Notes Receivable;On December 21, when the note matures, the firm receives $6060 from W. A. Bunn Company ($6,000 plus $60 interest).;If W. A. Bunn Company fails to pay the note on the due date, it is considered a dishonored note receivable. The note and interest are transferred to the customer’s account.;A 90-day, 12% note dated December 1, 2006, is received from Crawford Company to settle its account, which has a balance of $4,000.;Assuming that the accou