MGT120H5 Lecture Notes - Lecture 7: Current Liability, Cash Flow Statement, Decision Aids
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MGT120H5 Full Course Notes
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Shortly-term investments: within 12 months, each reporting date adjust to fair market ! Accounts receivable: sell goods on account , current asset. > (not all collectible) estimating bad debts allowance method! Used either method: : percentage of sales, aging or percentage of accounts receivable! Allowance method (writing off and write off is different): ! Writing off and recovery of accounts receivable direct write off method! Ratios: current, acid-test and days" sales in a/r: denominators: current liabilities,! Accounts receivable has a debit balance of ,300, and the allowance for uncollectible accounts has a credit balance of . What is the amount of net receivables after the write-off: ,100 b. Inventory, cost of goods sold & gross margin! Inventory the goods or products the company sells, it is a current asset on the balance sheet! Cost of goods sold inventory sold, it is an expense on the income statement !
