What you'll learn:
- Define accounts receivable and notes receivable, their nature as assets, and representing money owed for goods or services provided on credit.
- Explain accounts receivable cycle, including recording, monitoring, and collecting accounts receivable, and importance of subsidiary ledgers.
- Analyze valuation methods for accounts receivable: allowance method and direct write-off method, considering financial statements and matching principle.
- Apply allowance method to estimate bad debt expense based on historical data, industry norms, and economic conditions.
- Compare allowance method and direct write-off method, considering advantages, limitations, and financial reporting implications.
- Describe components of a note receivable and record related journal entries.
- Calculate simple interest on notes receivable using appropriate formulas.
- Interpret financial impact of accounts receivable and notes receivable on balance sheet and income statement.
- Analyze control measures for effective management of accounts receivable, including credit policies and collection strategies.
- Evaluate implications of accounts receivable and notes receivable on financial analysis and decision-making processes.
Welcome to our comprehensive course on Accounts Receivable and Notes Receivable in accounting. In this course, we will explore the fundamental concepts and practical applications of managing receivables, including accounts receivable and notes receivable.
We will begin by examining the characteristics of accounts receivable and notes receivable, understanding their role in financial transactions. The accounts receivable cycle will be thoroughly covered, including the journal entries for recording accounts receivable and the use of subsidiary ledgers to track individual customer balances.
A major focus of the course will be on the valuation of accounts receivable. We will delve into two commonly used methods: the allowance method and the direct write-off method. You will gain a comprehensive understanding of these methods and learn how they impact financial statements. We will explore the estimation of bad debt expense under the allowance method, emphasizing the importance of accurate valuation.
In addition, we will discuss the significance of bank reconciliations and internal controls specific to cash, enhancing your knowledge of cash management. We will cover the setup and recording of a petty cash account, ensuring you have a solid grasp of this important aspect of cash control.
The course will also address notes receivable, including their components and the journal entries involved in recording and receiving payment on a note. You will learn how to calculate simple interest, a crucial skill in analyzing and managing note receivable transactions.
To facilitate your learning experience, this course offers a wide range of resources. You will have access to downloadable PDF files for offline reference, Excel practice files to reinforce your skills, multiple-choice and short calculation practice questions to assess your understanding, and engaging discussion questions to foster interactive learning with fellow students.
Rest assured that you will be learning from a highly qualified instructor with extensive experience in accounting and teaching. With certifications such as CPA and CGMA, as well as a Master of Science in Taxation, the instructor possesses the expertise and practical insights necessary to guide you through the complexities of accounts receivable and notes receivable.
Enroll now to gain a comprehensive understanding of receivables, develop valuable skills, and advance your career in accounting.
