Sử dụng các phương pháp trợ cấp vào tài khoản cho uncollectibles và ước tính uncollectibles % của doanh số bán hàng và lão hóa cách tiếp cận. | Receivables Chapter 9 Accounts receivable Receivables Notes receivable Design internal controls for receivables. Objective 1 Establishing Internal Control What are some controls over accounts receivable? Separation of duties Approval for write-off Control over mail receipts Use the allowance method to account for uncollectibles and estimate uncollectibles by the percent of sales and aging approaches. Objective 2 The Credit Department Companies grant credit to customers in order to increase sales. The credit department evaluates customers who apply for credit cards. Uncollectible Accounts Expense Allowance method Direct write-off method Methods for Estimating Uncollectible Expense Percentage of Sales Aging of Receivables Percentage of Sales This is also called the income statement approach. It is based on prior experience of the business. It is computed as a percentage of credit sales. It ignores the current balance of the allowance account. The percentage used is adjusted as needed to | Receivables Chapter 9 Accounts receivable Receivables Notes receivable Design internal controls for receivables. Objective 1 Establishing Internal Control What are some controls over accounts receivable? Separation of duties Approval for write-off Control over mail receipts Use the allowance method to account for uncollectibles and estimate uncollectibles by the percent of sales and aging approaches. Objective 2 The Credit Department Companies grant credit to customers in order to increase sales. The credit department evaluates customers who apply for credit cards. Uncollectible Accounts Expense Allowance method Direct write-off method Methods for Estimating Uncollectible Expense Percentage of Sales Aging of Receivables Percentage of Sales This is also called the income statement approach. It is based on prior experience of the business. It is computed as a percentage of credit sales. It ignores the current balance of the allowance account. The percentage used is adjusted as needed to reflect collection experience. Percentage of Sales Example The credit department of Ana’s Boutique estimates (based on prior experience) that 1% of net credit sales are uncollectible. Net credit sales for the year just ended were $500,000. What is the adjusting entry? $500,000 × 1% = $5,000 Percentage of Sales Example Dec 31, 20xx Uncollectible Account Expense 5,000 Allowance for Uncollectible Accounts 5,000 Recorded expense for the year Decrease in Net Income Decrease in net Accounts Receivable What is the effect of this adjusting entry? Percentage of Sales Example Aging of Accounts Receivable This approach is also called the balance sheet approach because it focuses on accounts receivable. Individual accounts receivable from specific customers are analyzed according to the length of time they remain outstanding. Aging of Receivables Example Assume that International Hospital’s past collection experience indicates the following: Length of time % uncollectible 1-30 days 31-60 days
