ACCT 1220 Lecture Notes - Lecture 8: Subledger, General Ledger, Promissory Note

• School: University of Guelph
• Department: Accounting
• Course: ACCT 1220
• Professor: Philippe Lassou

Document Summary

Lecture 8: reporting and analyzing receivables practice problems: e8-3, e8-4, p8-5a, p8-6b, p8-10b. Amounts due to business from customers expected to be collected in cash. Accounts receivable - amounts owed by customers due to sale of goods and services. Notes receivable - credit instrument (written promise to pay) Other receivables - inters, loan and advances to employes, recoverable sales tax. Recorded when service is provided on account or at point of sale of merchandise on account. Reduced when was is collected, sales discount is taken or merchandise is returned by the customer. Subsidiary ledger - group of accounts that share a common characteristic. Provides details that support total balance for accounts receivable in general ledger. Single scout receivable account is the general ledger, control account. If customer doesn"t pay in full within credit term and interest charge may be added to the balance due. Losses from uncollectible accounts are debited to an account called bad debts expense.