[會計] ch7: Receivables 應收帳款
1. Accounts Receivable
A current asset representing amounts due from customers for services performed or merchandise sold on account. It is a current asset because it is normally converted into cash within a year or an operating cycle, whichever is longer.
2. Bad Debts (呆帳/壞帳)
直接沖銷法Direct Write-Off Method：最大缺點 違反會計配合原則入帳
備抵法Allowance Method：At the end of each accounting period, bad debt expense is estimated and recorded. 會先做呆帳估計也就是Allowance for Bad Debts, 期末再整理。
Allowance for Bad Debts 備抵呆帳：估計而已 資產的減項 a contra asset account 不會被結帳，因為在資產科目
Year-end: Adjusting entry required:
Bad Debt Expense XXX
Allowance for Bad Debts XXX
When an account is determined to be uncollectible:
Write-off entry required:
Allowance for Bad Debts XXX
Accounts Receivable XXX
When an account previously written off is recovered:
1. Reinstate account by reversing write-off:
Accounts Receivable XXX
Allowance for Bad Debts XXX
2. Record collection on account normally:
Cash XXX
Accounts Receivable XXX
Advantages:
1. Matches expenses against related revenues.
2. Reports the net realizable accounts receivable on the balance sheet.
net realizable account 淨變現價值 真的可以兌現的
Disadvantages:
1. Requires adjusting entry.
2. Requires year-end estimating of uncollectibles.
打消壞帳對應收帳款淨值沒影響
The related
a. Net method (One-line method)淨額法
b. Gross method 總額法
3. Estimate Bad Debts (期中會考)
a. The Balance Sheet Method
I. Percentage of Total Receivables 應收帳款百分比法
顧名思義，假設2%的應收帳款是呆帳，那就知道年底備抵呆帳是多少，期初如果有備抵就補滿就好。
Determine the amount of receivable which may be uncollectible at the end of the period. Calculate the credit balance of Allowance of Bad Debts at the end of the period as a percentage of outstanding receivables.
II. Aging Accounts Receivable 帳齡分析法
根據不同時間的帳，會依照呆帳比率去做加權。
Assume that the longer an amount is past due, the more likely it is to be uncollectible and thus becomes a bad debt. This method is similar to percent of receivables method, but give different rate to receivables with different age.
b. The Income Statement Method
Percentage of Net Sales On Account 淨賒銷百分比法
Under this approach, management estimates what percentage of credit sales will be uncollectible. This percentage is based on past experience and anticipated credit policy.
4. Summary: Allowance for Bad Debts
Allowance for Bad Debts
__________________________________________________________
| Beginning balance, Jan. 1
Deemed uncollectible | Recovery
__________________________________________________________
| Balance before adjustment
| Estimated Bad Debt Expense
__________________________________________________________
| End Balance, Dec. 31
5. Accounting for Merchandise Sales
定期盤存制：沒有Cost of Goods Sold及Inventory
永續盤存制：有Cost of Goods Sold及Inventory
6. Notes Receivable
a. A note is a written promise to pay the face amount at a certain date in the future, and usually with interest. It is a formal instrument that has a stronger legal claim. It is often used when companies lend or borrow money, when the credit amount or the credit period exceeds normal limits, or when settling accounts receivable.
b. When a note is expressed in terms of days, we omit the date the note is issued but include the due date. For a 90-day note dated March 15, the due date should be June 13 .
c. Journal Entries
7. Assessing How Well Companies Manage Their Receivables
• Accounts receivable turnover (應收帳款週轉率) : a measure used to indicate how fast a company collects its receivable
= Net (credit) sales/Average accounts receivable, net 越大越好
• Average collection period (應收帳款回收平均天數)
=365/Accounts receivable turnover 越小越好
• Companies frequently use the average collection period to assess the effectiveness of a company’s credit and collection policies. The general rule is that the collection period should not greatly exceed the credit term period.
Exercise for Chapter 7
1. Compute (1) net Accounts Receivable, (2) the balance of Allowance for Bad Debts, and (3) Bad Debt Expense for the following independent situations.
a. Accounts Receivable has a debit balance of $16,000. The Allowance for Bad Debts has a credit balance of $350 prior to adjustment. An aging schedule prepared on December 31 reveals $1,250 of uncollectible accounts.
b. Accounts Receivable has a debit balance of $16,000. The Allowance for Bad Debts has a debit balance of $760 prior to adjustment. An aging schedule prepared on December 31 reveals $1,500 of uncollectible accounts.
2. High Performance Cell Phones sold $20,000 of merchandise to Avery Trucking Company on account. Avery fell on hard times and paid only $6,000 of the account receivable. After repeated attempts to collect, High Performance finally wrote off its accounts receivable from Avery. Six months later, High Performance received Avery’s check for $14,000 with a note apologizing for the late payment.
Required: For the following items, prepare the necessary journal entries for High Performance.
a. Sales on account, $20,000. (Ignore Cost of Goods Sold.)
b. Collection of $6,000 on account.
c. Write-off the remaining portion of the Avery accounts receivable. High Performance uses the allowance method for uncollectible accounts.
d. Recovery of Avery’s accounts receivable.
e. Collection in full from Avery, $14,000.
Solutions
1.
a. (1) net Accounts Receivable = $16,000 − $1,250 = $14,750
(2) Allowance for Bad Debts = $1,250
(3) Bad Debt Expense = $1,250 − $350 = $900
b. (1) net Accounts Receivable = $16,000 − $1,500 = $14,500
(2) Allowance for Bad Debts = $1,500
(3) Bad Debt Expense = $1,500 + $760 = $2,260
2.
a. Accounts Receivable ·················································20,000
Sales Revenue ··························································20,000
b. Cash ··············································································6,000
Accounts Receivable ··············································6,000
c. Allowance for Bad Debts ·········································14,000
Accounts Receivable ··············································14,000
d. Accounts Receivable ·················································14,000
Allowance for Bad Debts ······································14,000
e. Cash ··············································································14,000
Accounts Receivable ··············································14,000
