Mahasiswa mampu memahami Akuntansi piutang tercatat, dan menganalisis transaksi piutang tercatat

  Cash 6542– SRI HANDAYANI, SE, MM, MAk, CPMA FEB103 PERTEMUAN #14

  

Mahasiswa mampu memahami

Akuntansi piutang tercatat, dan

menganalisis transaksi piutang

tercatat

   21

^st

Edition Warren Reeve Fess © Copyright 2004 South-Western, a division

  

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  Objectives

Objectives

  1. List the common classifcations of

After studying this

receivables.

  

After studying this

chapter, you should

  

2. Summarize and provide examples of

chapter, you should

internal control procedures that be able to:

be able to:

apply to receivables.

  3. Describe the nature of and the accounting for uncollectible receivables.

  4. Journalize the entries for the allowance method of accounting for

  

Objectives

Objectives

  5. Journalize the entries for the direct write-of of uncollectible receivables.

  

6. Describe the nature and characteristics

of promissory notes.

  7. Journalize the entries for notes receivable transactions.

  8. Prepare the Current Assets presentation of receivables on the balance sheet.

  9. Compute and interpret the accounts

Classification of Receivables

   Accounts Receivable —used for selling merchandise or services on credit, and normally expected to be collected in a relatively short period.

  

Notes Receivable— used to grant credit on the

basis of a formal instrument of credit, called a

promissory note.

   Other Receivables— include interest receivable,

taxes receivable, and receivables from officers

and employees.

  Acctg. Info Collections

  

Invoic

e

Acctg. ^{Goods or services}

  Sales

Separating the Receivable Functions

  Separating the Receivable Functions Credit Info. Credit Approval

  Customer Uncollectible Receivables Uncollectible Receivables

  Companies often sell their receivables to other companies. This transaction is called factoring the receivables, and the buyer of the receivables is called a factor.

  Companies often sell their receivables to other companies. This transaction is called

  factoring the

  receivables, and the buyer of the receivables is called a factor. Uncollectible Receivables Uncollectible Receivables

  

The Allowance Method

The Allowance Method

   This method is consistent with the matching principle. Management makes an estimate each year of the

   portion of accounts receivable that may not be collectible.

   Allowance for Doubtful Accounts is credited.

  Uncollectible Accounts Expense is debited and

   debited to Allowance for Doubtful Accounts and credited to Accounts Receivable .

  Actual accounts that prove to be uncollectible are

  

The Allowance Method

The Allowance Method

  Dec. 31 Uncollectible Accounts Expense 4 000 00 Allowance for Doubtful Accounts 4 000 00

  On December 31, Cynthia Richards estimates that a total of $4,000 of the $105,000 balance in her company’s Accounts Receivable will eventually be uncollectible.

  On December 31, Cynthia Richards estimates that a total of $4,000 of the $105,000 balance in her company’s Accounts Receivable will eventually be uncollectible.

  Adjusting Entry The net amount that is expected to be collected, $101,000 ($105,000 –

  $4,000), is called the net realizable value (NRV).

  The net amount that is expected to be collected, $101,000 ($105,000 –

  $4,000), is called the net realizable value (NRV).

  The Allowance Method The Allowance Method

  The adjusting entry reduces receivables to the NRV and matches

  The adjusting entry reduces receivables to the NRV and matches

  The adjusting entry fills the bucket.

  The adjusting entry fills the bucket.

  Allowanc e for Doubtful Accounts The Allowance Method

  The Allowance Method

  Writing off accounts empties the bucket.

  Writing off accounts empties the bucket.

  A llo w an ce fo r D O U B TF U L ac co un ts The Allowance Method

  The Allowance Method On January 21, John Parker’s account totaling

  $610 is considered to be

  On January 21, John Parker’s account totaling $610 is considered to be

  Jan. 21 Allowance for Doubtful Accounts 610 00 Accounts Receivable—John Parker 610 00

  To write off the uncollectible account.

  

The Allowance Method The Allowance Method On June 10, the written-off account is collected.

  On June 10, the written-off account is collected.

  Jun. 10 Accounts Receivable—John Parker 610 00 To reinstate the account written off on Jan. 21.

  An entry is made to reinstate John Parker’s account.

  An entry is made to reinstate John Parker’s account.

  Allowance for Doubtful Accounts 610 00

  

The Allowance Method

The Allowance Method A second entry is made to record receipt of the cash.

  A second entry is made to record receipt of the cash.

  Jun. 10 Cash 610 00

  Accounts Receivable—John Parker 610 00 To record collection on account.

  

The Allowance Method

The Allowance Method

  

The Allowance Method

The Allowance Method

  

Estimating Uncollectible Accounts Expense

Estimating Uncollectible Accounts Expense

  The allowance method uses two ways to estimate the amount debited to Uncollectible

  Accounts Expense.

  

it is estimated that 1% will be uncollectible,

the Uncollectible Accounts Expense is $3,000. Dec. 31 Uncollectible Accounts Expense 3 000 00 Allowance for Doubtful Accounts 3 000 00

  Adjusting Entry Based on a Percentage of Sales

  Based on a Percentage of Sales The Allowance Method

  The Allowance Method

  

The Allowance Method

The Allowance Method

  

Estimating Uncollectible Accounts Expense

Estimating Uncollectible Accounts Expense

  The allowance method uses two ways to estimate the amount debited to Uncollectible

  Accounts Expense.

  will be uncollectible and the Allowance for

Uncollectible Accounts currently has a balance of

$510, the Uncollectible Accounts Expense must be Dec. 31 Uncollectible Accounts Expense 2 880 00 Allowance for Doubtful Accounts 2 880 00

  Adjusting Entry Based on an Analysis of Receivables

  Based on an Analysis of Receivables The Allowance Method

  The Allowance Method

  

Accounts Receivable Aging and Uncollectibles

_{Customer Balance Due 1-30 31-60 61-90 91-180 181-365 365}

_Past Not Days Past Due _{over Brock Co. 470 $ 470 B. T. Barr 610} Ashby & Co. $ 150 $ 150 _{$ 350 $260}

_{Total $86,300 $75,000 $4,000 $3,100 $1,900 $1,200 $800 $300}

Saxon Woods 160 ¹⁶⁰ Total accounts receivable Total accounts receivable

shown by age.

shown by age.

  

Accounts Receivable Aging and Uncollectibles

_{Customer Balance Due 1-30 31-60 61-90 91-180 181-365 365}

_Past Not Days Past Due _{over Brock Co. 470 $ 470 B. T. Barr 610} Ashby & Co. $ 150 $ 150 _{$ 350 $260}

_{Total $86,300 $75,000 $4,000 $3,100 $1,900 $1,200 $800 $300}

Saxon Woods 160 ¹⁶⁰ Uncollectibles _{PERCENT 2% 5% 10% 20% 30% 50% 80%}

   Uncollectible percentages based on

  

Accounts Receivable Aging and Uncollectibles

_{Customer Balance Due 1-30 31-60 61-90 91-180 181-365 365}

_Past Not Days Past Due _{over Brock Co. 470 $ 470 B. T. Barr 610} Ashby & Co. $ 150 $ 150 _{$ 350 $260}

_{Total $86,300 $75,000 $4,000 $3,100 $1,900 $1,200 $800 $300}

Saxon Woods 160 ¹⁶⁰ Uncollectibles _{PERCENT 2% 5% 10% 20% 30% 50% 80%}

  $3,390 = $1,500 $200 $310 $380 $360 $400 $240

  Year-End Adjustment for Uncollectibles Year-End Adjustment for Uncollectibles General Ledger Accounts Receivable 86,300 A Allowance for Doubtful Accts. 510 Uncollectible Accts. Expense Accounts receivable $86,300 Less allowance for doubtful accounts 3,390 Net realizable value $82,910 Balance Sheet A Balances before adjustment A Year-end adjustment: $3,390 – $510 = $2,880 B 2,880 B 2,880 B

Balance after adjustment C

  3,390 C C

  Accounting for Uncollectible Accounts Receivable The Direct Write-Off Method

   This method is not consistent with the matching principle.

   Accounts that prove to be uncollectible are written off in the year they become worthless.

   Uncollectible Accounts Expense is debited and Accounts Receivable is credited for each such transaction.

The Direct Write-Off Method The Direct Write-Off Method

  On May 10, D. L. Ross’ account was determined to be uncollectible. The

  On May 10, D. L. Ross’ account was determined to be uncollectible. The $420 balance is written off the books.

  May 10 Uncollectible Accounts Expense 420 00 Accounts Receivable—D. L. Ross 420 00

  To write off an uncollectible account. In November, D. L. Ross remits a check

  In November, D. L. Ross remits a check

  Nov. 1 Accounts Receivable—D. L. Ross 420 00 Uncollectible Accounts Expense

  420 00 To reinstate account written off on May 10.

   The Direct Write-Off Method The Direct Write-Off Method

  1 ^st Entry A second entry is needed to record

  A second entry is needed to record

  Nov. 1 Cash 420 00

  Accounts Receivable—D. L. Ross 420 00 To record collection on account.

   The Direct Write-Off Method The Direct Write-Off Method

  2 ^nd Entry

  

Notes Receivable

Notes Receivable

  2,500.0 Payee

  $_____________ Payee

  March 16 Fresno, California______________20___

  06 Ninety

________________ _AFTER DATE _______ PROMISE TO PAY TO

We days

  THE ORDER OF ____________________________________________ Judson Company Two thousand fve hundred

_________________________________________________DOLLARS

00/100---------------------------

  City National Bank

PAYABLE AT ______________________________________________

Maker

  Maker

  VALUE RECEIVED WITH INTEREST AT ____ 10% NO. _______ DUE___________________

  14 June 14, 2006

  H. B. Lane TREASURER, WILLIARD COMPANY

  

 a specific amount of money (principal)

 to a specific person or company (payee)

 at a specific place  on a specific date or upon demand

 plus interest at a specific percentage of

   a specific amount of money (principal)

   to a specific person or company (payee)

   at a specific place

   on a specific date or upon demand

   plus interest at a specific percentage of

  A promissory note is a written document containing a promise to pay:

  

Notes Receivable

Notes Receivable

  The date a note is to be paid is called the due date. It is also referred to as the maturity date. The date a note is to be paid is called the due date. It is also referred to as the maturity date.

  Let’s determine the due date for a 90-day note dated March 16. Let’s determine the due date for a 90-day note dated March 16.

  Notes Receivable Notes Receivable Notes Receivable

Notes Receivable

  Total days in note 90 days Number of days in March

  31 Issue date of note March 16 Remaining days in March

• –15 days 75 days Number of days in April
• –30 days 45 days Number of days in May
• –31 days Residual days in June

  14 days Notes Receivable Notes Receivable

  The amount that is due at the maturity or due date is called the maturity value.

  The amount that is due at the maturity or due date is called the maturity value.

  

Received a $6,000, 12%, 30-day note

dated November 21, 2006 in settlement

of the account of W. A Bunn Co.

  Received a $6,000, 12%, 30-day note dated November 21, 2006 in settlement of the account of W. A Bunn Co.

  

Notes Receivable

Notes Receivable

  Principal + Interest = Maturity Value $6,000 + $60.00 = $6,060.00 Principal x Rate x Time = Interest $6,000 x 12% x 30/360 = $60.00 Interest Calculation Maturity Value Calculation

Notes Receivable

  Notes Receivable

  

Accounting for Notes Receivable

Accounting for Notes Receivable

  

A $6,000 30-day, 12% note dated

November 21 is received from W. A Bunn

A $6,000 30-day, 12% note dated November 21 is received from W. A Bunn

  Nov. 21 Notes Receivable 6 000 00

  Sales 6 000 00

  Received 30-day, 12% note dated November 21, 2006.

  

On December 21, when the note matures,

the firm receives $6060 from W. A. Bunn

On December 21, when the note matures, the firm receives $6060 from W. A. Bunn

  Dec. 21 Cash 6 060 00

  Notes Receivable 6 000 00

  Received principal and interest on matured note. Interest Revenue

  60 00

  

Accounting for Notes Receivable

Accounting for Notes Receivable

  

If W. A. Bunn Company fails to pay the note on

the due date, it is considered a dishonored note

If W. A. Bunn Company fails to pay the note on the due date, it is considered a dishonored note

  Dec. 21 Accounts Receivable—Bunn Co. 6 060 00 Notes Receivable

  6 000 00 To record dishonored note and interest. Interest Revenue

  60 00

  

Accounting for Notes Receivable

Accounting for Notes Receivable

  

A 90-day, 12% note dated December 1, 2006,

is received from Crawford Company to settle

  A 90-day, 12% note dated December 1, 2006, is received from Crawford Company to settle Dec. 1 Notes Receivable

  4 000 00 Accounts Receivable—Crawford Company

  4 000 00 Received note in settlement of account.

  

Accounting for Notes Receivable

Accounting for Notes Receivable

  

Accounting for Notes Receivable

Accounting for Notes Receivable

  Dec. 31 Interest Receivable 40 00

  Interest Revenue

  40

  00 Adjusting entry for accrued interest.

  Assuming that the accounting period

  Assuming that the accounting period

  ends on December 31, an adjusting entry

  

ends on December 31, an adjusting entry

  is required to record the accrued interest

  

Accounting for Notes Receivable

Accounting for Notes Receivable

  Mar. 1 Cash 4 120 00

  Notes Receivable 4 000

  00

  $4,000 x $4,000 x

  Interest Receivable

  40

  0.12 x 0.12 x

  00 Received payment on note and

  60/360 60/360

  Interest Revenue 80 interest.

  00 On March 1, 2004, $4,120 is received for

  

On March 1, 2004, $4,120 is received for

  Receivables on the Balance Sheet

  Crabtree Co. Balance Sheet December 31, 2006 Assets Current assets: Cash $119,500

  Notes receivable 250,000 Accounts receivable $445,000 Less allowance for doubtful accounts 15,000430,000

  Interest receivable 14,500 Merchandise inventory 714,000

  

Financial

Analysis and

Interpretation

  Accounts Receivable Turnover

  

Net sales

Accounts Receivable Turnover Accounts Receivable Turnover 2006 2005

  

Net sales on account $36,000,000 $32,500,000

Accounts receivable (net): Beginning of year $ 1,080,000 $1,050,000 End of year 1,220,000 1,080,000 Total

  $2,300,000 $2,130,000 Average $1,150,000 $1,115,000

  

Accounts receivable turnover 31.3 times 29.1 times

Use: To assess the efficiency

  Use: To assess the efficiency in collecting receivables in collecting receivables $36,000,000 $32,500,000

Number of Days’ Sales in Receivables Number of Days’ Sales in Receivables

  Accounts receivable, end of year Average daily sales on account $1,220,000 ($36,000,000 ÷ 365 days)

  =12.4 days Use: To assess the efficiency in collecting receivables and in the management of credit.

  Use: To assess the efficiency in collecting receivables and in the management of credit.

  Accounts receivable, end of year Average daily sales

  The End The End