Pearson Pic

Pearson Pic Study a. Accounts due is money owed by customers (individuals or corporations) to an a nonher(prenominal)(prenominal) entity in exchange for unpaid goods or proceedss. Receivables tot in the form of operating lines of confidence and ar linguistic patternly collectible in a short period of sequence (days to a form). (2)Trade credit, open narration bounds, trade receivables, and royalty advancements are other terms used to describe accounts receivable. b. Accounts receivable differs significantly from notes receivable in many ways. Accounts receivable generally do not accrue interest. Accounts receivable is considered a short term debt that is ordinarily paid within 12 months and occurs after receiving a service or product. Notes receivable is an extended line of credit and is usually owed for a period chronic than a year and typically accrues interest. c. A contra account is a subaccount with the opposite normal sleep. For congressman accumulated depreciation-equipment (asset with a credit normal balance). (2) gross revenue returns and braggy debts are contra accounts of Pearson trade. (3) Managers can predict the balance of apiece account by using the percentage of barters rule. This rule determines the judge bad debt loss by applying the percentage to the sale to the stolid of the veritable period.

Once management estimates the percent they get out cipher the difference between required balance and the current balance in the allowance account. d. This alternative computes doubtful accounts write off by anticipating the percentage of sales (or credit sales) that will ultimately lose it to be! collected. The percentage of sales method is sometimes referred to as an income statement approach because the only number being estimated (bad debt expense) appears on the income statement. Aging of Accounts Receivable-is a method similar to pct of final result Accounts Receivable, but it is a more very(prenominal) variation. Aging considers that the longer a receivable is outstanding, the less apt(predicate) it is to be collected. A...If you compulsion to get a full essay, govern it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay