financialaccountingfinancialassets(编辑修改稿)

financialaccountingfinancialassets(编辑修改稿)内容摘要：

i ng G a i ns a nd Lo s s e sA v a i l a bl e f or s a l e s e c uri t i e sH e l d f or s ho r t t e r m r e s a l e ( of t e n 6 t o 1 8 m on t hs )R e po r t e d i n s t oc k ho l de r s 39。 e qu i t y s e c t i on of t he ba l a nc e s he e tTra di ng s e c uri t i e sH e l d f or i m m e di a t e r e s a l e ( of t e n w i t hi n ho urs or da y s )R e po r t e d i n ot he r r e v e nu e ( e x pe ns e ) s e c t i on of t he i nc om e s t a t e m e ntH e l d t o m a t uri t y s e c uri t i e sD e bt s e c uri t i e s i nt e nd e d t o be he l d un t i l t he y m a t ureR e po r t e d i n s t oc k ho l de r s 39。 e qu i t y s e c t i on of t he ba l a nc e s he e t?The McGrawHill Companies, Inc., 1999 Irwin/McGrawHill Let’s turn our attention to accounts receivable. ?The McGrawHill Companies, Inc., 1999 Irwin/McGrawHill Uncollectible Accounts If a pany makes credit sales to customers, some accounts inevitably will turn out to be uncollectible. PAST DUE ?The McGrawHill Companies, Inc., 1999 Irwin/McGrawHill G E N E R A L J O U R N A LD a t e A c c o u n t T i t l e s a n d E x p l a n a t i o n D e b i t C r e d i tU n c o l l e c t i b l e A c c o u n t s E x p e n s e $$$$A l l o w a n c e f o r D o u b t f u l A c c o u n t s $$$$Reflecting Uncollectible Accounts in the Financial Statements At the end of each period, record an estimate of the uncollectible accounts. Contraasset account Selling expense ?The McGrawHill Companies, Inc., 1999 Irwin/McGrawHill The Allowance for Doubtful Accounts A cc o u n t s r ec ei va b l eL es s: A l l o w an ce f o r d o u b t f u l ac co u n t sN et r ea l i z ab l e va l u e o f ac co u n t s r ec ei va b l e The realizable value is the amount of accounts receivable that the business expects to collect. ?The McGrawHill Companies, Inc., 1999 Irwin/McGrawHill Writing Off an Uncollectible Account Receivable When an account is determined to be uncollectible, it no longer qualifies as an asset and should be written off. G E N E R A L J O U R N A LD a t e A c c o u n t T i t l e s a n d E x p l a n a t i o n D e b i t C r e d i tA l l o w a n c e f o r D o u b t f u l A c c o u n t s $$$$A c c o u n t s R e c e i v a b l e ( X C u s t o m e r ) $$$$?The McGrawHill Companies, Inc., 1999 Irwin/McGrawHill Writing Off an Uncollectible Account Receivable Assume that on January 5, KMax determined that Jason Clark would not pay the $500 he owes. KMax would make the following entry. G E N E R A L J O U R N A LD a t e A c c o u n t T i t l e s a n d E x p l a n a t i o n D e b i t C r e d i tJ a n . 5 A l l o w a n c e f o r D o u b t f u l A c c o u n t s 500A c c o u n t s R e c e i v a b l e ( J . C l a r k ) 500?The McGrawHill Companies, Inc., 1999 Irwin/McGrawHill Writing Off an Uncollectible Account Receivable Assume that before this entry, the Accounts Receivable balance was $10,000 and the Allowance for Doubtful Accounts balance was $2,500. Let抯 see what effect the writeoff had on these accounts. ?The McGrawHill Companies, Inc., 1999 Irwin/McGrawHill Writing Off an Uncollectible Account Receivable B e fo r e W r i te O ff A fte r W r i te O ffA c c o u n ts r e c e i v a b l e 1 0 , 0 0 0$ 9 , 5 0 0$ L e s s : A l l o w . fo r d o u b tfu l a c c ts . 2 , 5 0 0 2 , 0 0 0 N e t r e a l i z a b l e v a l u e 7 , 5 0 0$ 7 , 5 0 0$ Notice that the $500 writeoff did not change the realizable value nor did it affect any ine statement accounts. ?The McGrawHill Companies, Inc., 1999 Irwin/McGrawHill Recovery of an Account Receivable Previously Written Off G E N E R A L J O U R N A LD a t e A c c o u n t T i t l e s a n d E x p l a n a t i o n D e b i t C r e d i tA c c o u n t s R e c e i v a b l e ( X C u s t o m e r ) $$$$A l l o w a n c e f o r D o u b t f u l A c c o u n t s $$$$C a s h $$$$A c c o u n t s R e c e i v a b l e ( X C u s t o m e r ) $$$$Subsequent collections require that the original writeoff entry be reversed before the cash collection is recorded. ?T。