COMMERCE 1BA3 Lecture Notes - Financial Statement, Accounts Receivable, Income Statement
14 Jul 2014
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They are required to be measured at fair value at each reporting date. Resulting unrealized gains/losses are reflected on the income. Objective 2: account for and control receivables: receivables are monetary claims against others, accounts or trade receivables are amounts collectible from customers from the sale of goods and services. Individual customer"s account balances may be found in the account receivable. For good internal control, the credit department should also have no access to cash: decision guidelines provide a plan of action for the major issues in managing and accounting for receivables. Objective 3: estimate and account for uncollectible accounts receivable. Instructor"s resource manual for harrison et al. , financial accounting, 5ce: uncollectible-account expense is the cost to the seller of extending credit and arises from the failure to collect from credit customers. Allowance for uncollectible accounts xx: this entry reduces assets and net income. Allen company has ending accounts receivable of ,000 and ending allowance for uncollectible.
