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Study sets matching "accounting chapter 8 receivables"

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Study sets matching "accounting chapter 8 receivables"

23 terms
Chapter 8: Accounting for Receivables
Accounts receivable
Credit-granting policy
Credit-collection policy
Bad debts expense
A current asset that is created by a sale of merchandise or t…
A policy to determine which customers to grant credit and how…
A policy establishing the amount of time that customers are a…
The expense stemming from the inability of a business to coll…
Accounts receivable
A current asset that is created by a sale of merchandise or t…
Credit-granting policy
A policy to determine which customers to grant credit and how…
23 terms
Chapter 8 - Accounting for Receivables
Amounts due from individuals & companies
Amounts customers owe on acct.; gen ex…
Written promise for amounts received;…
Where co's record credit losses as deb…
Receivables
Accounts Receivable
Notes Receivable
Bad debt expense
Amounts due from individuals & companies
Receivables
Amounts customers owe on acct.; gen ex…
Accounts Receivable
20 terms
Chapter 8: Accounting for Receivables
Accounts receivable
Accounts receivable turnover ratio
Aging the accounts receivable
Allowance for Doubtful Accounts
Amounts owed by customers on account.
A measure of the liquidity of accounts receivable; computed b…
The analysis of customer balances by the length of time they…
An account that shows the estimated amount of claims on custo…
Accounts receivable
Amounts owed by customers on account.
Accounts receivable turnover ratio
A measure of the liquidity of accounts receivable; computed b…
19 terms
Chapter 8 - Accounting for Receivables
accounts receivable
accounts receivable turnover
aging the accounts receivable
allowance method
amounts owed by customers on account
a measure of the liquidity of accounts receivable; computed b…
the analysis of customer balances by the length of time they…
a method of accounting for bad debts that involves estimating…
accounts receivable
amounts owed by customers on account
accounts receivable turnover
a measure of the liquidity of accounts receivable; computed b…
12 terms
Chapter 8 - Accounting for Receivables
Recognize accounts receivable - sellin…
Recognize accounts receivable - return…
Recognize accounts receivable - Receiv…
Direct write-off method
accounts receivable - debited ... sales revenue - credited ... cos…
sales returns and allowances - debited ... accounts receivable -…
cash - debited ... sales discount - debited ... accounts receivable…
for uncollectible receivables records bad debt expense only w…
Recognize accounts receivable - sellin…
accounts receivable - debited ... sales revenue - credited ... cos…
Recognize accounts receivable - return…
sales returns and allowances - debited ... accounts receivable -…
21 terms
Chapter 8: Accounts Receivables
Accounts Receivable
Notes Receivable
Valuing Accounts Receivable
Bad Debts Expense
amounts owed by customers that result from the sale of goods…
Claims for which formal instruments of credit are issued as p…
valued at net realizable value, or the amount expected to be…
how the seller records losses that result from extending credit
Accounts Receivable
amounts owed by customers that result from the sale of goods…
Notes Receivable
Claims for which formal instruments of credit are issued as p…
Accounting Chapter 8 Quiz- Receivables
Trade receivables occur when two compa…
Of the two methods of accounting for u…
Generally accepted accounting principl…
The direct write-off method records Ba…
False
True
True
True
Trade receivables occur when two compa…
False
Of the two methods of accounting for u…
True
Chapter 8: Accounting for Receivables Vocabulary
Accounts receivable (trade receivable)
Accounts receivable aging method
Accounts receivable turnover
Aging schedule
A current asset that is created by sale that is created by a…
A procedure that uses an aging schedule to determine the year…
A ratio calculated as annual net sales divided by the average…
An analysis that shows how long a business's accounts receiva…
Accounts receivable (trade receivable)
A current asset that is created by sale that is created by a…
Accounts receivable aging method
A procedure that uses an aging schedule to determine the year…
Accounting-Chapter 8 Receivable
Receivable
Debtor
Account Receivable
Notes Receivable
A monetary claim against a business or an individual
The party to a credit transaction who takes on a obligation/p…
The right to receive cash in the future from customers for go…
A written promise that a customer will pay a fixed amount of…
Receivable
A monetary claim against a business or an individual
Debtor
The party to a credit transaction who takes on a obligation/p…
15 terms
Accounting Chapter 8: Receivables Vocabulary
Accounts Receivable
Accounts Receivable Turnover
Aging the Receivables
Allowance for Doubtful Accounts
A claim against the customer created by selling merchandise o…
The relationship between net sales and accounts receivable, c…
The process of analyzing the accounts receivable and classify…
The contra asset account for accounts receivable.
Accounts Receivable
A claim against the customer created by selling merchandise o…
Accounts Receivable Turnover
The relationship between net sales and accounts receivable, c…
71 terms
Financial Chapter 8 Accounting for Receivables
Receivables
Accounts Receivable
Notes Receivable
Other Receivable
amounts due from individuals and companies; claims expected t…
from sale of goods and services; within 30-60 days
written promise; collection of interest; more than 60-90 days
nontrade receivables, like interest receivable, loans to comp…
Receivables
amounts due from individuals and companies; claims expected t…
Accounts Receivable
from sale of goods and services; within 30-60 days
Accounting Final Chapter 8 Receivables
Another term for selling receivables.
All money claims against other entities.
Records bad debt expense only when a s…
A contra asset that represents the amo…
Factoring
Receivables
Direct Write-off Method
Allowance for Doubtful Accounts
Another term for selling receivables.
Factoring
All money claims against other entities.
Receivables
Accounting Chapter 8: Accounting for Receivable
Accounts Recievable
Notes Receivable
Bad Debt Expense
Direct Write-off method
Amounts customers owe on account . They result from the sale…
A written promise ( promissory note) for amounts to be received
An expense account to record Uncle ruble Receivables
(Not acceptable for GAAP) under this method , Bad Debt Expens…
Accounts Recievable
Amounts customers owe on account . They result from the sale…
Notes Receivable
A written promise ( promissory note) for amounts to be received
22 terms
Accounting Chapter 8: Reporting and Analyzing Receivables
Receivables
Accounts recievable
Notes Recievable
Other Receivables
Amounts due from individuals and companies, claims that are e…
Amounts customers owe on account. they result from the sale o…
A written promise as evidenced bya formal instrument for amou…
Include non trade receivables such as interest receivable, lo…
Receivables
Amounts due from individuals and companies, claims that are e…
Accounts recievable
Amounts customers owe on account. they result from the sale o…
18 terms
Financial Accounting: Chapter 8-Reporting and Analyzing Receivables
Receivables
Accounts Receivable
Notes Receivable
Trade Receivables
Amounts due from individuals and companies that are expected…
Amounts customers owe on account
Written promise (as evidenced by a formal instrument) for amo…
Notes and accounts receivable that result from sales transact…
Receivables
Amounts due from individuals and companies that are expected…
Accounts Receivable
Amounts customers owe on account
18 terms
Accounting 200 Chapter 8: Reporting and Analyzing Receivables
accounts receivable
accounts receivable turnover
aging the accounts receivable
allowance method
amounts customers owe on account
a measure of the liquidity of accounts receivable, computed b…
a schedule of customer balances classified by the length of t…
a method of accounting for bad debts that involves estimating…
accounts receivable
amounts customers owe on account
accounts receivable turnover
a measure of the liquidity of accounts receivable, computed b…
9 terms
Accounting Chapter 8:NOTES RECEIVABLE
Promissory Note
Loan Money/Exceed/Settlement
Dr. Notes Receivable... Cr. Accounts Rece…
Bear interest
A written promise to pay a specified amount of money on deman…
Notes may be used when parties _______, when the amount of a…
Journal Entry to use a notes receivable to settle an accounts…
Many notes _________
Promissory Note
A written promise to pay a specified amount of money on deman…
Loan Money/Exceed/Settlement
Notes may be used when parties _______, when the amount of a…
8 terms
ACCT Chapter 8: Accounts Receivable
Recognizing Accounts Receivable
Terms
2/10
n/30
Companies record accounts receivable when they perform a serv…
Conditions attached to an account to encourage early payment…
The term 2/10 means that if the customers pays within 10 days…
The term n/30 means the customers has 30 days to pay without…
Recognizing Accounts Receivable
Companies record accounts receivable when they perform a serv…
Terms
Conditions attached to an account to encourage early payment…
22 terms
Accounting Chapter 8: Reporting and Analyzing Receivables
Receivables
Accounts recievable
Notes Recievable
Other Receivables
Amounts due from individuals and companies, claims that are e…
Amounts customers owe on account. they result from the sale o…
A written promise as evidenced bya formal instrument for amou…
Include non trade receivables such as interest receivable, lo…
Receivables
Amounts due from individuals and companies, claims that are e…
Accounts recievable
Amounts customers owe on account. they result from the sale o…
18 terms
Accounting 200 Chapter 8: Reporting and Analyzing Receivables
accounts receivable
accounts receivable turnover
aging the accounts receivable
allowance method
amounts customers owe on account
a measure of the liquidity of accounts receivable, computed b…
a schedule of customer balances classified by the length of t…
a method of accounting for bad debts that involves estimating…
accounts receivable
amounts customers owe on account
accounts receivable turnover
a measure of the liquidity of accounts receivable, computed b…
5 terms
Accounting Chapter 8: RECOGNIZING ACCOUNTS RECEIVABLE
Sale/Point of sale/Provided
Dr. Accounts Receivable ... Cr. Sales
Dr. Sales Returns and Allowances... Cr. A…
Dr. Cash (Plug)... Cr. Sales Discounts (D…
A company records the Accounts receivable when it makes a ___…
Journal Entry to record a sale on account
Journal Entry to record a return or allowance
Journal entry to record a collection within the discount period
Sale/Point of sale/Provided
A company records the Accounts receivable when it makes a ___…
Dr. Accounts Receivable ... Cr. Sales
Journal Entry to record a sale on account
6 terms
Accounting Chapter 8:DISPOSING OF ACCOUNTS RECEIVABLE
Sell/Obtain Cash/Outsourcing/Collecting
Factor
Commission
Dr. Cash (Cash received=Plug)... Dr. Serv…
Companies frequently _____ their accounts receivable in order…
A finance company or bank that buys receivables and then coll…
A _______ is charged to the company selling receivables
The journal entry to record sales of receivables to a factor
Sell/Obtain Cash/Outsourcing/Collecting
Companies frequently _____ their accounts receivable in order…
Factor
A finance company or bank that buys receivables and then coll…
22 terms
Accounting Ch 8: Receivables
accounts receivable
notes receivable
current assets
factoring
normally expected to be collected within a relatively short p…
amounts that customers owe for which a formal, written instru…
other receivables expected to be collected within one year ar…
Companies often sell their receivables to other companies. Th…
accounts receivable
normally expected to be collected within a relatively short p…
notes receivable
amounts that customers owe for which a formal, written instru…
Accounting Chapter 8: Receiving Accounts Payable
Accounts receivable
Accounts reveivable turnover
Aging the accounts receivable
Allowance Method
Amounts customers owe on account.
A measure of the liquidity of accounts receivable... net credit…
A schedule of customer balances classified by the length of t…
A method of accounting for bad debts that involves estimating…
Accounts receivable
Amounts customers owe on account.
Accounts reveivable turnover
A measure of the liquidity of accounts receivable... net credit…
11 terms
Accounting Chapter 8 Part 3 (Managing Receivables)
What are the five steps for managing a…
What is a concentration of credit risk?
What is the accounts receivable turnov…
What ratio measures the number of time…
1. Determine to whom to extend credit... 2. Establish a payment…
What is a threat of nonpayment from a single large customer o…
What is computed by dividing net credit sales (net sales-cash…
Answer: Accounts Receivable Turnover
What are the five steps for managing a…
1. Determine to whom to extend credit... 2. Establish a payment…
What is a concentration of credit risk?
What is a threat of nonpayment from a single large customer o…
37 terms
Accounting Chapter 8 Part 1 (Accounts Receivable)
What is a receivable?
What are accounts receivable?
When are Accounts Receivable expected…
What do Accounts Receivable result from?
What are amounts due from individuals and companies that are…
What are amounts customers owe on account that result in the…
Answer: Within 30-60 days
Answer: Sales of goods and services (often called trade recei…
What is a receivable?
What are amounts due from individuals and companies that are…
What are accounts receivable?
What are amounts customers owe on account that result in the…
15 terms
Accounting 101 A Chapter 8 Reporting Analyzing Receivables
$1,552
Debit to Bad Debts Expense for $2,800.
Debit to Bad Debts Expense for $5,600
When an account is determined to be un…
On January 15, Nifty Company sells merchandise on account to…
An aging of a company's accounts receivable indicates that $4…
An aging of a company's accounts receivable indicates that $4…
Under the direct write-off method of accounting for uncollect…
$1,552
On January 15, Nifty Company sells merchandise on account to…
Debit to Bad Debts Expense for $2,800.
An aging of a company's accounts receivable indicates that $4…
25 terms
Chapter 8 and 6: Accounts Receivable and Inventory
Journal entry for accounts receivable
Allowance Method 2 ways of accounting…
Journal entry to accrue for the allowa…
Determining Net Realizable Value
DR A/R... CR Sales
Income statement approach: (% of credit sales) ... Balance Sheet…
DR Bad debt expense ... CR Allowance for bad debt
A/R - allowance of doubtful accounts
Journal entry for accounts receivable
DR A/R... CR Sales
Allowance Method 2 ways of accounting…
Income statement approach: (% of credit sales) ... Balance Sheet…
19 terms
Accounting Ch.8 (Accounting for Receivables)
Accounts Receivable
Accounts receivable turnover ratio
Aging the accounts receivable
Allowance method
Amounts owed by customers on account.
A measure of the liquidity of accounts receivable; computed b…
The analysis of customer balances by the length of time they…
A method of accounting for bad debts that involves estimating…
Accounts Receivable
Amounts owed by customers on account.
Accounts receivable turnover ratio
A measure of the liquidity of accounts receivable; computed b…
12 terms
Chapter 8: Receivables
Claim against the customer created by…
Relationship between sales and account…
Process of analyzing the accounts rece…
Contra asset account for accounts rece…
Accounts Receivable
Accounts Receivable Turnover
Aging the Receivables
allowance for doubtful accounts
Claim against the customer created by…
Accounts Receivable
Relationship between sales and account…
Accounts Receivable Turnover
16 terms
Chapter 7: Accounting for Receivables
Accounts receivable
bad debts
direct write-off method of accounting…
matching (expense recognition) principle
amounts due from customers for credit sales
the amounts of these customers are uncollectible accounts, co…
records the loss from an uncollectible an uncollectible accou…
requires expenses to be reported in the same accounting perio…
Accounts receivable
amounts due from customers for credit sales
bad debts
the amounts of these customers are uncollectible accounts, co…
22 terms
Chapter 8 - Receivables
Accounts Receivable
Accounts Receivable Turnover Ratio
Acid-Test Ratio
Aging-of-Receivables Method
The right to receive cash in the future from customers for go…
A ratio that measures the number of times the company collect…
The ratio of the sum of cash, cash equivalents, short-term in…
A method of estimating uncollectible receivables by determini…
Accounts Receivable
The right to receive cash in the future from customers for go…
Accounts Receivable Turnover Ratio
A ratio that measures the number of times the company collect…
23 terms
ACG ch 8 (accounting for receivables)
Accounts receivables
How to account for account receivables
Losses from accounts receivable
Allowance method
current asset resulting from a sale or service executed on a…
Debit: account receivable ... Credit: sales revenue... Debit: cash…
-business extend credit in order to increase volume ... -underst…
-estimate be made of bad debt expenses at the time of the rev…
Accounts receivables
current asset resulting from a sale or service executed on a…
How to account for account receivables
Debit: account receivable ... Credit: sales revenue... Debit: cash…
43 terms
Chapter 8: Receivables
Receivables
Accounts Receivable
Notes Receivable
Trade Receivables
All money claims against other entities (people, firms, organ…
Most common transaction: selling products/service on account.…
Formal, written instrument of credit that has been issued.... Of…
Notes and Accounts Receivable that results from a sales trans…
Receivables
All money claims against other entities (people, firms, organ…
Accounts Receivable
Most common transaction: selling products/service on account.…
20 terms
Accounting Exam 3 Chapter 8 Notes Receivable
Promissory Note
Promissory Notes may be used:
Maker
Payee
1. Companies can grant credit in exchange for this... 2. Is a wr…
1. When individuals/companies lend/borrow money... 2. When amoun…
The party making the promise to pay in a promissory note... -is…
The party to whom the payment is to be made in a promissory n…
Promissory Note
1. Companies can grant credit in exchange for this... 2. Is a wr…
Promissory Notes may be used:
1. When individuals/companies lend/borrow money... 2. When amoun…
13 terms
Chapter 8 Receivables
Accounts receivable
accounts receivable turnover
aging the receivables
allowance for doubtful accounts
most common transaction creating a receivable is selling merc…
measures how frequently during the year the accounts receivab…
preceding steps in which the analysis of receivables method i…
contra asset account credited for the estimated bad debts
Accounts receivable
most common transaction creating a receivable is selling merc…
accounts receivable turnover
measures how frequently during the year the accounts receivab…
22 terms
Chapter 8 - Receivables
Accounts Receivable
Accounts Receivable Turnover Ratio
Acid - test ratio
Aging - of - Receivables Method
The right to receive cash in the future from customers for go…
A ratio that measures the number of times the company collect…
Measure a company's ability to pay its current liabilities.…
A method of estimating uncollectible receivables by determini…
Accounts Receivable
The right to receive cash in the future from customers for go…
Accounts Receivable Turnover Ratio
A ratio that measures the number of times the company collect…
42 terms
Chapter 8 - Receivables
Account Receivable
Notes Receivable
Investments
Bad Debt Expense
1. A claim against the customer created by selling merchandis…
1. A customer's written promise to pay an amount and possibly…
Noncurrent Assest - Collection expected beyond 1 year
1. Operating expense incurred failure to collect receivables…
Account Receivable
1. A claim against the customer created by selling merchandis…
Notes Receivable
1. A customer's written promise to pay an amount and possibly…
25 terms
Chapter 8: Receivables
30-60 days
Notes Receivable
Yes, if expected to be collected withi…
Investments
When are accounts receivable normally expected to be paid?
Amounts that customers owe for which a formal, written instru…
Are current assets receivables?
What are non-current assets called?
30-60 days
When are accounts receivable normally expected to be paid?
Notes Receivable
Amounts that customers owe for which a formal, written instru…
24 terms
Accounting Chapter 8 Part 2 (Notes Receivable)
What is a promissory note?
What are Notes Receivable?
In a Notes Receivable, when are paymen…
What do Notes Receivable generally res…
What is a written promise to pay a specified amount of money…
What represents claims for which formal instruments of credit…
Answer: Within 60-90 days
Answer: The sale of goods and services (often called trade re…
What is a promissory note?
What is a written promise to pay a specified amount of money…
What are Notes Receivable?
What represents claims for which formal instruments of credit…
16 terms
Chapter 8: Receivables
receivable
creditor
accounts receivable, notes receivable,…
factoring/pledging
monetary claim against a business or individual
lends money or something to the debter
three major types of receivables
selling accounts receivables
receivable
monetary claim against a business or individual
creditor
lends money or something to the debter
13 terms
Chapter 8 Receivables
account receivable
accounts receivable turnover
aging the receivables
Allowance for Doubtful Accounts
A claim against the customer created by selling merchandise o…
The relationship between net sales and accounts receivable, c…
The process of analyzing the accounts receivable and classify…
The contra asset account for accounts receivable.
account receivable
A claim against the customer created by selling merchandise o…
accounts receivable turnover
The relationship between net sales and accounts receivable, c…
14 terms
chapter 8 receivables
receivables
accounts receivable
notes receivables
uncollectible receivables
includes all money claims against other entities, including p…
The most common transaction creating a receivable is THE sell…
amounts that customers owe for which a formal, written instru…
there is no general rule for when an account become uncollect…
receivables
includes all money claims against other entities, including p…
accounts receivable
The most common transaction creating a receivable is THE sell…
40 terms
Chapter 8: Receivables
Net Realizable Value =
T/F Companies close Allowance account…
T/F Write-offs must be approved by man…
Employee who writes-off is not involve…
AR - Allowance
False
True
Segregation of Duties
Net Realizable Value =
AR - Allowance
T/F Companies close Allowance account…
False
17 terms
chapter 9: accounting for receivables
accounts receivable
bad debts
direct write-off method
allowance method
amounts due from customers for credit sales
total amount of uncollectible accounts and is an expense of s…
method that records the loss from an uncollectible account re…
method that matches the estimated loss from uncollectible acc…
accounts receivable
amounts due from customers for credit sales
bad debts
total amount of uncollectible accounts and is an expense of s…
20 terms
Ch. 8 (Accounting for Receivables)
Receivables
Accounts receivable
Notes receivable
Trade receivables
Amounts due from individuals and other companies
Amounts owed by customsers on account
Written promise (as evidenced by a formal instrument) for amo…
Notes and accounts receivable that result from sales transact…
Receivables
Amounts due from individuals and other companies
Accounts receivable
Amounts owed by customsers on account
24 terms
Chapter 8 - Receivables
Receivables
Accounts Receivable
Notes Receivable
Trade Receivables
Amounts due from individuals and companies.
are amounts customers owe on account
Written promise for amounts to be received.
Notes and accounts receivable that result from sales transact…
Receivables
Amounts due from individuals and companies.
Accounts Receivable
are amounts customers owe on account
8 terms
Chapter 8: Receivables
What are uncollectible accounts
Uncollectible accounts are an ________…
If a company uses the Percentage of Ne…
If a company uses the aging method and…
Accounts where companies know that the customers can not or w…
Expense
Uncollectible Expense__________... Allowance for UE ___________…
Uncollectible Expense__________... Allowance ______________... The…
What are uncollectible accounts
Accounts where companies know that the customers can not or w…
Uncollectible accounts are an ________…
Expense
14 terms
ch.8 Accounts Receivable
Types of Receivables
Accounts Receivable
Notes Receivables
Other Receivables
Amounts due from individuals and other companies that are exp…
Amounts owed by customers on account that result from the sal…
Written promise for amounts to be received. Normally requires…
Nontrade receivables such as interest, loans to officers, adv…
Types of Receivables
Amounts due from individuals and other companies that are exp…
Accounts Receivable
Amounts owed by customers on account that result from the sal…
10 terms
Accounting Chapter 8: Receivable, Bad Debt Expense, and Interest Revenue
allowance method
Bad Debt Expense J/E
Write-offs J/E
Recoveries
-records bad debt expense in the period of the related sale (…
debit: bad debt expense... credit: allowance for bad debts
debit: allowance for bad debts... credit: A/R
debit: A/R... credit: allowance for bad debts... debit: cash... credi…
allowance method
-records bad debt expense in the period of the related sale (…
Bad Debt Expense J/E
debit: bad debt expense... credit: allowance for bad debts
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