Accounting Flashcards: Cash Equivalents & Accounts Receivable Methods

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Finance - Personal Finance

andrsonztdc Created by 10 mon ago

Cards in this deck(17)

Cash equivalents are short-term investments with a maturity of less than _____ days.

Cash includes currency, coins, balances in checking accounts, and _____ from customers.

The income statement approach measures bad debt expense as a percentage of _____ sales.

The balance sheet approach measures the allowance for uncollectible accounts as a percentage of _____ receivables.

Sales returns are recorded as a contra account to sales revenue and are increased by a _____ entry.

Allowance for uncollectible accounts is a contra account to accounts receivable and is increased by a _____ entry.

Bad debt expense is recorded on the income statement and is increased by a _____ entry.

Allowance for sales returns is a contra account to accounts receivable and is increased by a _____ entry.

Under the gross method, sales discounts are recorded as a contra account on the income statement and increased by a _____ entry.

Sales discounts forfeited are recorded under the net method on the income statement and increased by a _____ entry.

The gross method assumes customers will not take the discount, and if they do, a _____ entry is made to sales discount.

The net method assumes customers will take the discount, and if they don't, a _____ entry is made to sales discount expense.

To record sales returns, debit accounts receivable and cost of goods sold, and credit _____ and inventory.

At the end of the accounting cycle, additional estimated returns are recorded by debiting sales return and inventory, and crediting refund liability and _____.

To record bad debt estimated, debit bad debt expense and credit _____ for uncollectible accounts.

To record actual bad debt, debit allowance for uncollectible accounts and credit _____.

When a written-off account is collected, first reinstate by debiting accounts receivable and crediting allowance for uncollectible accounts, then record cash by debiting cash and crediting _____.

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Accounting Flashcards: Cash Equivalents & Accounts Receivable Methods

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