Kế toán Mỹ Account receivable and Bad Dept

1. Receivables are normally classified as (1) accounts receivable, (2) notes receivable, or (3) other receivables. 2. Dan’s Hardware should use the direct write-off method because it is a small business that has a relatively small number and volume of accounts receivable. 3. Contra asset, credit balance 4. The accounts receivable and allowance for doubtful accounts may be reported at a net amount of $661,500 ($673,400 – $11,900) in the Current Assets section of the balance sheet. In this case, the amount of the allowance for doubtful accounts should be shown separately in a note to the financial statements or in parentheses on the balance sheet. Alternatively, the accounts receivable may be shown at the gross amount of $673,400 less the amount of the allowance for doubtful accounts of $11,900, thus yielding net accounts receivable of $661,500. 5. (1) The percentage rate used is excessive in relationship to the accounts written off as uncollectible; hence, the balance in the allowance is excessive. (2) A substantial volume of old uncollectible accounts is still being carried in the accounts receivable account. 6. An estimate based on analysis of receivables provides the most accurate estimate of the current net realizable value. 7. a. Sailfish Company b. Notes Receivable 8. The interest will amount to $5,100 ($85,000 × 6%) only if the note is payable one year from the date it was created. The usual practice is to state the interest rate in terms of an annual rate, rather than in terms of the period covered by the note. 9. Debit Accounts Receivable for $243,600 Credit Notes Receivable for $240,000 Credit Interest Revenue for $3,600 10. Cash 245,427 Accounts Receivable [$240,000 + ($240,000 × 6% × 90/360)] 243,600 Interest Revenue 1,827 ($243,600 × 30/360 × 9% = $1,827). CHAPTER 8 RECEIVABLES DISCUSSION QUESTIONS 8-1 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CHAPTER 8 Receivables PE 8–1A Feb. 12 Cash 800 Bad Debt Expense 2,400 Accounts Receivable—Leo Jorgenson 3,200 May 3 Accounts Receivable—Leo Jorgenson 2,400 Bad Debt Expense 2,400 3 Cash 2,400 Accounts Receivable—Leo Jorgenson 2,400 PE 8–1B Oct. 2 Cash 600 Bad Debt Expense 1,350 Accounts Receivable—Rachel Elpel 1,950 Dec. 20 Accounts Receivable—Rachel Elpel 1,350 Bad Debt Expense 1,350 20 Cash 1,350 Accounts Receivable—Rachel Elpel 1,350 PE 8–2A Feb. 12 Cash 800 Allowance for Doubtful Accounts 2,400 Accounts Receivable—Leo Jorgenson 3,200 May 3 Accounts Receivable—Leo Jorgenson 2,400 Allowance for Doubtful Accounts 2,400 3 Cash 2,400 Accounts Receivable—Leo Jorgenson 2,400 PRACTICE EXERCISES 8-2 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CHAPTER 8 Receivables PE 8–2B Oct. 2 Cash 600 Allowance for Doubtful Accounts 1,350 Accounts Receivable—Rachel Elpel 1,950 Dec. 20 Accounts Receivable—Rachel Elpel 1,350 Allowance for Doubtful Accounts 1,350 20 Cash 1,350 Accounts Receivable—Rachel Elpel 1,350 PE 8–3A a. $55,500 ($7,400,000 × 0.0075) b. Accounts Receivable………………………………………………… … Allowance for Doubtful Accounts ($9,000 + $55,500)………… … Bad Debt Expense…………………………………………………… … c. Net realizable value ($685,000 – $64,500)………………………… … PE 8–3B a. $231,500 ($46,300,000 × 0.0050) b. Accounts Receivable………………………………………………… … Allowance for Doubtful Accounts ($231,500 – $12,500)……… … Bad Debt Expense…………………………………………………… … c. Net realizable value ($3,460,000 – $219,000)……………………… 231,500 $3,241,000 $620,500 Adjusted Balance $3,460,000 219,000 Adjusted Balance $685,000 55,500 64,500 8-3 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CHAPTER 8 Receivables PE 8–4A a. $41,000 ($50,000 – $9,000) b. Accounts Receivable……………………………………………… … Allowance for Doubtful Accounts………………………………… … Bad Debt Expense…………………………………………………… … c. Net realizable value ($685,000 – $50,000)……………………… … PE 8–4B a. $257,500 ($245,000 + $12,500) b. Accounts Receivable……………………………………………… … Allowance for Doubtful Accounts………………………………… … Bad Debt Expense…………………………………………………… … c. Net realizable value ($3,460,000 – $245,000)…………………… … PE 8–5A a. The due date for the note is September 6, determined as follows: August …………………………………………………………….…… 24 days (31 – 7) September…………………………………………………………… … 6 days Total…………………………………………………………………… … 30 days b. $210,875 [$210,000 + ($210,000 × 5% × 30/360)] c. Sept. 6 Cash 210,875 Notes Receivable 210,000 Interest Revenue 875 257,500 $3,215,000 $635,000 Adjusted Balance $3,460,000 245,000 Adjusted Balance $685,000 41,000 50,000 8-4 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CHAPTER 8 Receivables PE 8–5B a. The due date for the note is August 7, determined as follows: April…………………………………………………………………… 21 days (30 – 9) May……………………………………………………………………. 31 days June…………………………………………………………………… 30 days July……………………………………………………………………. 31 days August………………………………………………………….…… … 7 days Total…………………………………………………………………… 120 days b. $462,000 [$450,000 + ($450,000 × 8% × 120/360)] c. Aug. 7 Cash 462,000 Notes Receivable 450,000 Interest Revenue 12,000 PE 8–6A a. Net sales…………………………… … Accounts receivable: Beginning of year……………… End of year……………………… Average accts. receivable……… … Accts. receivable turnover……… … b. Net sales…………………………… … Average daily sales……………… … Average accts. receivable……… … Number of days’ sales in receivables……………………… … c. The decrease in the accounts receivable turnover from 10.2 to 9.1 and the increase in the number of days’ sales in receivables from 35.8 days to 40.1 days indicate unfavorable trends in the efficiency of collecting receivables. Accounts Receivable Turnover 2014 2013 $2,912,000 $2,958,000 ($2,912,000 ÷ $320,000) ($2,958,000 ÷ $290,000) $ 300,000 $ 280,000 [($300,000 + $340,000) ÷ 2] $ 340,000 $ 300,000 $ 320,000 $ 290,000 ($320,000 ÷ $7,978.1) ($290,000 ÷ $8,104.1) [($300,000 + $340,000) ÷ 2] [($280,000 + $300,000) ÷ 2] 40.1 days 35.8 days Number of Days’ Sales in Receivables 2014 2013 $2,912,000 $2,958,000 ($2,912,000 ÷ 365 days) ($2,958,000 ÷ 365 days) $ 320,000 $ 290,000 $ 7,978.1 $ 8,104.1 9.1 [($280,000 + $300,000) ÷ 2] 10.2 8-5 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CHAPTER 8 Receivables PE 8–6B a. Net sales……………………………… … Accounts receivable: Beginning of year………………… End of year………………………… Average accts. receivable………… … Accts. receivable turnover………… … b. Net sales……………………………… … Average daily sales………………… … Average accts. receivable………… … Number of days’ sales in receivables………………………… … c. The increase in the accounts receivable turnover from 11.8 to 13.4 and the decrease in the number of days’ sales in receivables from 30.9 days to 27.2 days indicate favorable trends in the efficiency of collecting receivables. ($590,000 ÷ $21,660.3) ($570,000 ÷ $18,427.4) [($600,000 + $580,000) ÷ 2] [($540,000 + $600,000) ÷ 2] $ 21,660.3 $ 18,427.4 27.2 days 30.9 days ($7,906,000 ÷ 365 days) ($6,726,000 ÷ 365 days) $ 590,000 $ 570,000 13.4 11.8 ($7,906,000 ÷ $590,000) ($6,726,000 ÷ $570,000) Number of Days’ Sales in Receivables 2014 2013 $7,906,000 $6,726,000 [($600,000 + $580,000) ÷ 2] [($540,000 + $600,000) ÷ 2] $ 580,000 $ 600,000 $ 590,000 $ 570,000 Accounts Receivable Turnover 2014 2013 $7,906,000 $6,726,000 $ 600,000 $ 540,000 8-6 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CHAPTER 8 Receivables Ex. 8–1 Accounts receivable from the U.S. government are significantly different from receivables from commercial aircraft carriers such as Delta and United. Thus, Boeing should report each type of receivable separately. In its filing with the Securities and Exchange Commission, Boeing reports the receivables together on the balance sheet, but discloses each receivable separately in a note to the financial statements. Ex. 8–2 a. MGM Resorts International: 22.6% ($93,760,000 ÷ $415,654,000) b. Johnson & Johnson: 3.4% ($340,000,000 ÷ $10,114,000,000) c. Casino operations experience greater bad debt risk, since it is difficult to control the creditworthiness of customers entering the casino. In addition, individuals who may have adequate creditworthiness could overextend themselves and lose more than they can afford if they get caught up in the excitement of gambling. In contrast, Johnson & Johnson’s customers are primarily other businesses such as grocery store chains. Ex. 8–3 Jan. 30 Accounts Receivable—Dr. Cindy Mott 85,000 Sales 85,000 30 Cost of Merchandise Sold 50,000 Merchandise Inventory 50,000 June 3 Cash 48,000 Bad Debt Expense 37,000 Accounts Receivable—Dr. Cindy Mott 85,000 Nov. 27 Accounts Receivable—Dr. Cindy Mott 37,000 Bad Debt Expense 37,000 27 Cash 37,000 Accounts Receivable—Dr. Cindy Mott 37,000 EXERCISES 8-7 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CHAPTER 8 Receivables Ex. 8–4 Mar. 19 Accounts Receivable—Midnight Delights Co. 37,500 Sales 37,500 19 Cost of Merchandise Sold 23,000 Merchandise Inventory 23,000 Aug. 31 Cash 22,000 Allowance for Doubtful Accounts 15,500 Accounts Receivable—Midnight Delights Co. 37,500 Dec. 22 Accounts Receivable—Midnight Delights Co. 15,500 Allowance for Doubtful Accounts 15,500 22 Cash 15,500 Accounts Receivable—Midnight Delights Co. 15,500 Ex. 8–5 a. Bad Debt Expense 11,750 Accounts Receivable—Wil Treadwell 11,750 b. Allowance for Doubtful Accounts 11,750 Accounts Receivable—Wil Treadwell 11,750 Ex. 8–6 a. $501,000 ($66,800,000 × 0.0075) c. $334,000 ($66,800,000 × 0.0050) b. $493,000 ($475,000 + $18,000) d. $350,000 ($360,000 – $10,000) Ex. 8–7 Avalanche Auto Bales Auto Derby Auto Repair Lucky’s Auto Repair Pit Stop Auto Reliable Auto Repair Trident Auto Valley Repair & Tow 68 (7 + 30 + 31)August 24 May 17 Number of Days Past Due 84 (23 + 30 + 31) 167 (14 + 30 + 31 + 31 + 30 + 20 (31 – 11) 130 (7 + 31 + 31 + 30 + 31) 59 (28 + 31) 42 (11 + 31) Account Due Date August 8 October 11 108 (16 + 31 + 30 + 31) June 23 September 2 September 19 July 15 8-8 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CHAPTER 8 Receivables Ex. 8–8 a. Customer Color World Industries Hawks Company Osler Inc. Sather Sales Company Wisdom Company b. Not Past Over Customer Balance Due 1–30 31–60 61–90 90 Allied Industries Inc. 3,000 3,000 Archer Company 4,500 4,500 Zussman Company 5,000 5,000 Subtotals 750,000 480,000 160,000 75,000 28,000 7,000 Color World Industries 33,000 33,000 Hawks Company 15,000 15,000 Osler Inc. 21,000 21,000 Sather Sales Company 8,000 8,000 Wisdom Company 6,500 6,500 Totals 833,500 488,000 166,500 96,000 43,000 40,000 Ex. 8–9 Not Past Over Balance Due 1–30 31–60 61–90 90 Total receivables 833,500 488,000 166,500 96,000 43,000 40,000 Percentage uncollectible 2% 6% 12% 30% 75% Allowance for doubtful accounts 74,170 9,760 9,990 11,520 12,900 30,000 63 days (1 + 31 + 31) 54 days (23 + 31) September 6 August 25 Not past due 6 days (31 – 25) Days Past Due Days Past Due Due Date March 13 Number of Days Past Due 171 days (18 + 30 + 31 + 30 + 31 + 31) June 29 July 8 Aging of Receivables Schedule August 31 8-9 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CHAPTER 8 Receivables Ex. 8–10 Aug. 31 Bad Debt Expense 67,820 Allowance for Doubtful Accounts 67,820 Uncollectible accounts estimate ($74,170 – $6,350). Ex. 8–11 Balance Percent Amount Not past due $ 740,000 0.5% $ 3,700 1–30 days past due 390,000 2% 7,800 31–60 days past due 85,000 4% 3,400 61–90 days past due 28,000 14% 3,920 91–180 days past due 42,000 32% 13,440 Over 180 days past due 15,000 80% 12,000 Total $1,300,000 $44,260 Ex. 8–12 2014 Dec. 31 Bad Debt Expense 47,635 Allowance for Doubtful Accounts 47,635 Uncollectible accounts estimate ($44,260 + $3,375). Estimated Age Interval Uncollectible Accounts 8-10 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. [...]... Receivables Ex 8–14 a June Oct Dec 8,440 14 Cash Bad Debt Expense Accounts Receivable Rosalie Oakes 3,000 9,500 16 Accounts Receivable Kathy Quantel Bad Debt Expense 8,440 16 Cash Accounts Receivable Kathy Quantel Aug 8 Bad Debt Expense Accounts Receivable Kathy Quantel 8,440 31 Bad Debt Expense Accounts Receivable Wade Dolan Accounts Receivable Greg Gagne Accounts Receivable Amber Kisko Accounts Receivable Shannon... for Doubtful Accounts Accounts Receivable Shawn Brooke Accounts Receivable Eve Denton Accounts Receivable Art Malloy Accounts Receivable Cassie Yost 30,000 Bad Debt Expense Allowance for Doubtful Accounts Uncollectible accounts estimate ($5,250,000 × 0.75% = $39,375) b Bad Debt Expense Accounts Receivable Shawn Brooke Accounts Receivable Eve Denton Accounts Receivable Art Malloy Accounts Receivable Cassie...CHAPTER 8 Receivables Ex 8–13 a Apr July Dec 8,450 15 Cash Bad Debt Expense Accounts Receivable Dan Pyle 500 6,600 27 Accounts Receivable Dean Sheppard Bad Debt Expense 8,450 27 Cash Accounts Receivable Dean Sheppard May 13 Bad Debt Expense Accounts Receivable Dean Sheppard 8,450 31 Bad Debt Expense Accounts Receivable Paul Chapman Accounts Receivable Duane DeRosa Accounts Receivable Teresa Galloway Accounts... for Doubtful Accounts Accounts Receivable Rosalie Oakes 8,440 31 Allowance for Doubtful Accounts Accounts Receivable Wade Dolan Accounts Receivable Greg Gagne Accounts Receivable Amber Kisko Accounts Receivable Shannon Poole Accounts Receivable Niki Spence 24,955 31 Bad Debt Expense Allowance for Doubtful Accounts Uncollectible accounts estimate ($47,090 – $1,545) Dec 8,440 16 Cash Accounts Receivable Kathy... for Doubtful Accounts Accounts Receivable Kim Abel Accounts Receivable Lee Drake Accounts Receivable Jenny Green Accounts Receivable Mike Lamb 102,500 Bad Debt Expense Allowance for Doubtful Accounts Uncollectible accounts estimate ($109,650 + $7,500) b Bad Debt Expense Accounts Receivable Kim Abel Accounts Receivable Lee Drake Accounts Receivable Jenny Green Accounts Receivable Mike Lamb 117,150 21,550... Receivable Dan Pyle 500 6,600 27 Accounts Receivable Dean Sheppard Allowance for Doubtful Accounts 8,450 8,450 31 Allowance for Doubtful Accounts Accounts Receivable Paul Chapman Accounts Receivable Duane DeRosa Accounts Receivable Teresa Galloway Accounts Receivable Ernie Klatt Accounts Receivable Marty Richey 13,510 31 Bad Debt Expense Allowance for Doubtful Accounts Uncollectible accounts estimate ($3,778,000... Co 6,400 31 Accounts Receivable Crawford Co Allowance for Doubtful Accounts 3,880 31 Cash Accounts Receivable Crawford Co Oct 7,350 27 Cash Accounts Receivable Seth Nelsen Aug 27 Accounts Receivable Seth Nelsen Allowance for Doubtful Accounts 3,880 7,350 7,350 6,400 3,880 3,880 31 Allowance for Doubtful Accounts Accounts Receivable Newbauer Co Accounts Receivable Bonneville Co Accounts Receivable Crow... CHAPTER 8 Receivables Ex 8–24 Apr June Aug Oct 60,000 30 Notes Receivable Accounts Receivable Rhoni Melville May 18 Notes Receivable Accounts Receivable Glenn Cross 42,000 18 Accounts Receivable Glenn Cross Notes Receivable Interest Revenue ($60,000 × 7% × 30/360) 60,350 29 Accounts Receivable Rhoni Melville Notes Receivable Interest Revenue ($42,000 × 8% × 60/360) 42,560 16 Cash Accounts Receivable Glenn... June Aug 10 Notes Receivable Accounts Receivable 144,000 15 Notes Receivable Accounts Receivable 270,000 144,000 270,000 9 Cash Notes Receivable Interest Revenue 145,200 144,000 1,200 Oct 150,000 12 Cash Notes Receivable Interest Revenue 276,300 30 Notes Receivable Accounts Receivable Sept 22 Notes Receivable Accounts Receivable 210,000 150,000 270,000 6,300 210,000 6 Cash Notes Receivable Interest... Cash Accounts Receivable Harry Carr Dec 23 Accounts Receivable Harry Carr Allowance for Doubtful Accounts 4,000 4,000 4,000 31 Allowance for Doubtful Accounts Accounts Receivable Cavey Co Accounts Receivable Fogle Co Accounts Receivable Lake Furniture Accounts Receivable Melinda Shryer 24,000 31 Bad Debt Expense Allowance for Doubtful Accounts Uncollectible accounts estimate ($60,000 – $3,410) 56,590 . account*………………………………… … 1, 545 Adjustment………………………………………………………………………………… … $45 , 545 * $36,000 – $8 ,44 0 – $9,500 + $8 ,44 0 – $ 24, 955 = $1, 545 $320,000 110,000 24, 000 18,000 43 ,000 $515,000 Past Due) Accounts Estimated. $28,753 .4 Year 2 Year 1 $5,660,300 $4, 978,900 ($10,706,588 ÷ $1,155,185) ($10 ,49 4,983 ÷ $1,108,567.5) $592,700 ($539 ,45 0 ÷ $15,507.7) ($531 ,45 0 ÷ $13, 640 .8) $531 ,45 0$539 ,45 0 [($592,700 + $48 6,200). 2] 39.0 34. 8 $48 6,200 ( $4, 978,900 ÷ 365 days) 9 .4 ($5,660,300 ÷ $539 ,45 0) ( $4, 978,900 ÷ $531 ,45 0) [( $48 6,200 + $576,700) ÷ 2] $15,507.7 ($5,660,300 ÷ 365 days) $13, 640 .8 10.5 9.3 9.5 $1,265,032 $1, 045 ,338 $1,155,185