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CHAPTER 9 Receivables EYE OPENERS 1.Receivables argon normally classified as (1) accounts receivable, (2) notes receivable, or (3) other receivables. 2.Transactions in which merchandise is sold or services are provided on credit generate accounts receivable. 3.a. authentic Assets b.Investments 4.Examples of other receivables include interest receivable, taxes receivable, and receivables from officers or employees. 5.Gallatin Hardware should accustom the direct write-off method because it is a small blood line that has a relatively small number and volume of accounts receivable and they are immaterial. 6.Contra asset, credit relief 7. The accounts receivable and allowance for doubtful accounts may be reported at a net add up of $266,950 ($298,150 $31,200) in the Current Assets section of the balance sheet. In this case, the sum up of the allowance for doubtful accounts should be shown separately in a note to the financial statements or in parentheses on the balance sheet. Alternatively, the accounts receivable may be shown at the gross amount of money of $298,150 less the amount of the allowance for doubtful accounts of $31,200, thus grant net accounts receivable of $266,950. 8.

(1)The percentage rate used is undue in relationship to the volume of accounts written off as uncollectible; hence, the balance in the allowance is excessive. (2)A demonstrable volume of old uncollectible accounts is still being carried in the accounts receivable account. 9.An estimate based on aging of receivables provides the most accurate estimate of the current net realizable value. 10.The advantages of a claim evidenced by a note are that (1) the debt is acknowledged, (2) the payment terms are specified, (3) it is a stronger claim in the event of court action, and (4) it is usually more readily conveyable to a creditor in settlement of a debt or to a bank for cash. 11.a.Tucker Company b.Notes Receivable 12.The interest will amount to... If you wish to get a full essay, order it on our website: Ordercustompaper.com

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