ADM 1340 Chapter Notes - Chapter 8: Accounting Software, Credit Risk, Promissory Note

• School: University of Ottawa
• Department: Administration
• Course: ADM 1340
• Professor: Lamia Chourou

Document Summary

Reporting and analysing receivables: accounts receivable, recording accounts receivable, subsidiary ledgers. Interest revenue: uncollectible account receivable, measuring and recording estimated uncollectible accounts, writing off uncollectible accounts, collecting uncollectible accounts, notes receivable, recording notes receivable, derecognizing notes receivable. Statement presentation of receivables: statement of financial position. Income statement: managing receivables, extending credit, establishing a payment period, monitoring collections, evaluating liquidity of receivables. Accounts receivable: receivables refers to the amount that is due to a business from its customers or other companies, they are claims that are to be collected in cash, they are usually classified as, accounts receivable. This is the amount owed by customers on account. Usually its expected to pay this within 30 days: notes receivable. This is a written promise that will be repaid. This can have a time period of 30 days or longer. Accounts and notes receivable that result from sales transactions are often called trade receivables: other receivables.