Textbook Notes (369,137)
Canada (162,407)
Accounting (533)
ACC 100 (214)
Chapter 7

Chapters 7, 8, 9

8 Pages
182 Views

Department
Accounting
Course Code
ACC 100
Professor
Walter Krystia

This preview shows pages 1,2 and half of page 3. Sign up to view the full 8 pages of the document.
Description
Chapter 7 Liquid Assets and Internal Control Subsidiary Ledger: The detail for a number of individual items that collectively make up a single general ledger account. Control Account: The general ledger account that is supposed by a subsidiary account. An account receivable signifies that an external party owes the entity money! A trade account receivable represents the amount owed to the entity by a customer in respect of revenue from the sale of goods provision of services. Credit Sales Disadvantages: Slows inflow of cash Risk of uncollectible accounts Example: Say in January of the following year, the company found out that one of their customers declared bankruptcy. The company has an AR from the customer of $40,000. What should we do? - We have to write-off the balance because it has no future economic benefit. Assets = Liabilities + Shareholders Equity Accounts Receivable Bad Debt Expense - 40,000 - 40,000 Potential uncollectible AR balances some AR will be uncollectible dont know which specific customers accounts will not be collected management uses their knowledge (based on past experience, current economic conditions and industry averages) to ESTIMATE the proportion that will go bad in the www.notesolution.com
More Less
Unlock Document

Only pages 1,2 and half of page 3 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit