ADM 1340 Lecture Notes - Lecture 16: Matching Principle, Accounts Receivable, Current Asset
27 Feb 2019
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Chapter 7 is not required for the course, so it is skipped. It is not going to be on the midterm exam because if she does not do it today she cannot finish all the course material for the rest of the semester. Three topics covered today: understand and perform valuation and recording of accounts receivable and bad debt expense, calculate ratio, valuation and recording of notes ratio. It is an asset right to collect money from customers. May not have money to pay for purchase now, so you will extend this and allow them to pay within 30 to 60 days if they have a good credit account history. Remember that it is a current asset as it is turned into cash. This is when a customer does not pay us. Assume you are a furniture store, two accounting periods: 2016 2017. In october 31st 2016 you sell ,000 revenue even though the customer did not pay you.
