RSM219H1 Lecture Notes - Subledger, General Ledger, Accounts Receivable

• School: UTSG
• Department: Rotman Commerce
• Course: RSM219H1
• Professor: Alexander Edwards

Document Summary

1. 1receivables refer to amounts due from individuals and other companies that are expected to be collected in cash. 1. 2. 1 accounts receivable, are amounts owed by customers on account. These receivables are expected to be collected within 30 days or so. 1. 2. 2 notes receivable represent claims for which formal instruments of credit are issued as evidence of the debt. The debtor normally is required to pay interest and the time period may extend for 30 to 90 days or longer. Notes and accounts receivable that result from sales transactions are often called trade receivables. 1. 2. 3 other receivables include nontrade receivables such as gst recoverable, interest receivable, loans to company officers, advances to employees, and recoverable income taxes: recognizing accounts receivable. 2. 1accounts receivable are recognized when merchandise is sold on account, as explained in. 2. 2recognizing accounts receivable also occurs when a company sells merchandise and a customer uses the company"s own credit card.