Business Administration 2257 Study Guide - Midterm Guide: Accounts Payable, Fiscal Year, Real Estate Broker

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: Eric Silverberg

Document Summary

2. record interest at end of note, or accrued. Interest = n/r principal x interest rate x n/12 months. Customer does not pay at maturity date (move to a/r) **with instruction, then recorded as write-off or cash collection from a/r*** Cr interest receivable (only if interest in receive. ) Steps: calculate t/b in a4da, calculate e/b in a4da (using equation of what was given, calculate bad debt expense. Bad debt = e/b a4da t/b a4da: record. Recovery: dr a/r cr a4da, dr cash cr a/r. *if recovering only a portion, only recover a certain portion* **case may give total cash collected from all a/r but may have collected some of the a/r, read case wording! ***after all inventory is accounted for, plug for. Cogs only at the end of the fiscal year*** ***transportation charges for delivering goods to customer = delivery expense. Transportation costs for when we pay for supplies coming to us is under.