Presentation on theme: "Allow. for Doubtful Accounts Other Terms Review Potpourri $100100$100100$100100 $200200$200200$200200 $300300$300300$300300 $400400$400400$400400 $500500."— Presentation transcript:
Allow. for Doubtful Accounts Other Terms Review Potpourri $100100$100100$100100 $200200$200200$200200 $300300$300300$300300 $400400$400400$400400 $500500 Recording Interest $400400 $100100 $200200 $300300 $500500 Bad Debts $100100 $200200 $300300 $400400 $500500$500500$500500
Allowance for DA - $100 Method of accounting that reduces accounts receivable, as well as net income, for an estimate of uncollectible accounts. What is the Allowance Method? Back to Board
Allowance for DA - $200 A contra-asset account containing the estimated dollar value of the uncollectible accounts receivable. What is Allowance for Doubtful Accounts? Back to Board
Allowance for DA - $300 A line item on the balance sheet that is computed by subtracting Allowance for Doubtful Accounts from Accounts Receivable. What is “Accounts Receivable, Net of Allowance” (or “Net Realizable Value”)? Back to Board
Allowance for DA - $400 When using the allowance method for bad debts, these accounts are affected by the adjusting journal entry for the estimate of bad debts expense for the period. What are Bad Debt Expense and Allowance for Doubtful Accounts? Back to Board
Allowance for DA - $500 The principle that requires an estimated bad debt expense to be recorded in the period in which the sale took place. What is the Matching Principle (expenses must be recorded in the period they are incurred to generate revenues)? Back to Board
Bad Debts - $100 The account used to report an estimate of this period’s credit sales that customers are likely to fail to pay. What is Bad Debt Expense? Back to Board
Bad Debts - $200 Removing an uncollectible account, and its corresponding allowance, from the accounting records. What is a Write Off? Back to Board
Bad Debts - $300 Back to Board The accounts affected when an account receivable is determined to be uncollectible and is written off. What are Allowance for Doubtful Accounts (decreased, debited), and Accounts Receivable (decreased, credited)?
Bad Debts - $400 A method of estimating bad debt expense based on the percentage of credit sales in prior years that weren’t collected. What is the Percentage of Credit Sales Method? Back to Board
Bad Debts - $500 A method of estimating uncollectible accounts based on the age of each account receivable. What is the Aging of Accounts Receivable Method? Back to Board
Recording Interest - $100 Interest = Principal x Interest Rate x Time. What is the Interest Formula? Back to Board
Recording Interest - $200 Accounts affected when money is loaned out and a Note Receivable is established. What are Note Receivable (increase, debited) and Cash (decrease, credited)? Back to Board
Recording Interest - $400 These accounts are affected when $3,000 of cash is received for $1,500 of interest earned this period and $1,500 earned in a previous period. What are Cash (+3000, debited), Interest Receivable (-1500, credited) and Interest revenue (+1500, credited)? Back to Board
Recording Interest - $500 The three accounts affected when a note matures and a company receives the principal and final earned interest payment. What are Cash (increase, debited), Interest Revenue (increase, credited), and Notes Receivable (decrease, credited)? Back to Board
Other Terms - $100 The internal control principle that aims to prevent the same person from receiving collections from customers and writing-off customer account balances. What is “segregation of duties”? Back to Board
Other Terms - $200 The account name used to report amounts that a company is to receive, arising from a written agreement with another party. What is a Note Receivable? Back to Board
Other Terms - $300 Determines how many times the process of selling and collecting on account occurs during the period, on average. What is the Receivables Turnover Ratio? Back to Board
Other Terms - $400 365/Receivables Turnover Ratio for the Year. What is Days to Collect? Back to Board
Other Terms - $500 The term that refers to selling accounts receivable to a collections company. What is “factoring”? Back to Board
Review Potpourri - $100 Back to Board The general characteristics of costs that are included in Inventory. What are any costs needed to get inventory into a condition and location ready for sale?
Review Potpourri - $200 Back to Board The part of the Bank Reconciliation that requires adjusting entries to be made. What is the Company’s Books side of the Bank Reconciliation?
Review Potpourri - $300 Back to Board The internal control principle that relates to preparing a bank reconciliation. What is independent verification?
Review Potpourri - $400 Back to Board The accounts affected by a Sales Return. What are Sales Returns and Allowances, Cash (or A/R), Inventory, and Cost of Goods Sold?
Review Potpourri - $500 Back to Board Deposits in transit are accounted for in this manner on the bank reconciliation. What is an addition to update the bank’s records?
Daily Double Specify Your Wager!
Recording Interest --- What accounts are affected when interest is earned, but hasn’t yet been collected. Back to Board What are Interest Receivable (increase, debited) and Interest Revenue (increase, credited)?