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Lecture

ACC 821 Lecture Notes - Joggins, Accounts Payable, Cash Flow


Department
Accounting
Course Code
ACC 821
Professor
Louis Pike

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Revenue recognition:
Performance has occurred
Amount of revenue and cost to earn it is resoanbly measure
Collection of payment is assured
Critical event:
Delivery
Completion og production
Cash collection
Completion of warranty/return period
Objective:
Tax minimization
Stweradship
Management evaluation
Performance evaluation
Cash flow evaluation
Monitoring contract compliance
Earning management
Direct write off:
Bad debt exp
a/r
other ways:
bad debt exp
allowance for uncolleastable debts

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writing of receivable:
afua
a/r
11.
Allowance for doubtful accounts December 31, 2009
$38,150
Less: Accounts written of during 2010
(39,600)
Pre-closing allowance for doubtful accounts December 31, 2010
(1,450)
Credit sales during 2010
2,262,500
Average percentage of credit sales uncollectible
2%
Bad debts expense for 2010
45,250
Pre-closing allowance for doubtful accounts December 31, 2010
(1,450)
Allowance for doubtful accounts December 31, 2010
$43,800
Bad debt expense
45,250
Joggins Inc.
Cash From Operations - Indirect Method
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