Class notes
Accounts Receivable
- Course
- Institution
Accounts Receivable complete introduction and summary
[Show more]
Seller
Follow
loanprocess009
Content preview
Accounts Receivable:Accounting Journal
Accounts receivable represents a contractual right to receive cash and another financial
asset from the other entities. So basically it is favorable on our part Kazinga. We have the
right to collect cash in the future or any other asset, and this is considered as an asset okay.
So in in practice, we have this trade and nontrade receivables. the accounts receivable the
less formal and to pay a certain amount at a certain date.. accounts receivable unfair value.
It's simply the face amount of the receivables of course if you could remember contribute
augland company so partnership discussed but last time or even in sole proprietorship. If we
contribute land to the entity, we are going to record it at fair value. if you're receivable is just
short term then you okay face amount it will be different. If the receivable will be noncurrent.
accounts receivable account customer sayo. And the normal balance of your accounts
receivable is supposed to be debit right sales return um let 's have an example so your entry
will be debit accounts receivable credit sales Tama so costs customer account Meron and
then after a period of time. Nagbayan Shah No 100 000 so eliminated and how are we going
to record sales return.?
Ayan and lastly say nothing um alison and unreceivables like account titles so that is
requirement number or letter A compound entry to reclassify these accounts and letter B
compute the amount to be presented as trade and other receivables. So I discuss accounts
receivable and notes. the computational formula type but I want to introduce to you. This
one the t account. balance because we have here the deductions of course first we are going
to the doc our collections okay and how much is our collection. We have 5. 3 million
collections. We have five three and we also have these writeoffs accounts written off at first.
accounts receivable that is trade that 's 1. 2 million and then what else Eto silence alright. So
we are going to assume that this is not current okay it will not be collected the next 12
months.. have claims claims. receivable and that is one hundred thousand kayalan looking
at the credit side main let 's just call it advances to employees advance. cash advance to
affiliates, affiliates, affiliates advances to affiliates and lastly advances to suppliers. This is
an asset on our part and a liability on the part of our supplier..
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller loanprocess009. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $18.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75323 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now