《实用会计英语》（第四版）教学课件 PPT chapter4.ppt

4.5 Accounting for Bad Debts 4.5.2 The Two Methods of Accounting for Bad Debts Method two: Direct write-off method There are situations, however, where it is impossible to estimate, with reasonable accuracy, the uncollectible at the end of the period. Also, if a business sells most of its goods or services on a cash basis, the amount of its expense from uncollectible accounts is usually small. In such cases, the amount of receivables is also likely to represent a small part of the current assets, and the direct write-off method of recording uncollectible expense may be used. The Under the direct write-off method, Uncollectible Accounts Expense is not recorded until an account has been determined to be worthless. Thus, an allowance account and an adjusting entry are not needed at the end of the period. 高等教育出版社 * 高等教育出版社 * 1. Describe the control of bank account 2. Understand the recording of account receivables 3. Describe note receivables 4. Understand the two methods of accounting for bad debts. 高等教育出版社 * Next Unit 5.1 The Concept of Inventory 5.2 Inventory System 5.3 Inventory Measurement Methods * * “ ” “ ” Unit 4 Cash and Receivables 葛军 吴晓华 高等教育出版社 * Outline of Unit 4 4.1 Cash 4.2 The Bank Account: a Control Device 4.3 Accounts Receivable 4.4 Notes Receivable 4.5 Accounting for Bad Debts 高等教育出版社 * List of Cash and Receivables 高等教育出版社 * 4.1 Cash Definition: The term ‘cash’ includes currency, coins, checks, money orders and credit card receipts. Individual accountability for all cash, including cash receipts, change funds and petty cash funds, should be maintained at all times. An accounting record for cash should be established immediately upon receipt. Access to cash should be restricted at all times to the person accountable for the funds Related Process of Cash Transaction: Cash recording Cash depositing Reconciliation Refunds and voids Safeguarding cash 高等教育出版社 * 4.2 The Bank Account: a Control Device Definition: Keeping cash in a bank acco