国际注册会计师题目8

国际注册会计师目8 CHAPTER 8 Accounting for Receivables ASSIGNMENT CLASSIFICATION TABLE Brief A B Study Objectives Questions Exercises Do It Exercises Problems Problems 1 Identify the different types 1 2 1 of receivables 2 Explain how companies 3 2 1 2 1A 3A 4A 1B 3B 4B recognize accounts 6A 7A 6B 7B receivable 3 Distinguish between the 4 5 6 3 4 5 1 3 4 5 6 1A 2A 3A 1B 2B 3B methods and bases 7 8 6 7 4A 5A 4B 5B companies use to value accounts receivable 4 Describe the entries to 9 10 11 8 2 7 8 9 6A 7A 6B 7B record the disposition of accounts receivable 5 Compute the maturity date 12 13 14 9 10 3 10 11 12 6A 7A 6B 7B of and interest on notes 15 16 13 receivable 6 Explain how companies 11 10 11 12 7A 7B recognize notes receivable 7 Describe how companies 7A 7B value notes receivable 8 Describe the entries to 17 3 12 13 6A 7A 6B 7B record the disposition of notes receivable 9 Explain the statement 18 19 3 12 4 14 1A 6A 1B 6B presentation and analysis of receivables Copyright 2011 John Wiley Sons Inc Weygandt IFRS 1e Solutions Manual For Instructor Use Only 8-1 ASSIGNMENT CHARACTERISTICS TABLE Problem Difficulty Time Number Description Level Allotted min 1A Prepare journal entries related to bad debts expense Simple 15–20 2A Compute bad debts amounts Moderate 20–25 3A Journalize entries to record transactions related to bad debts Moderate 20–30 4A Journalize transactions related to bad debts Moderate 20–30 5A Journalize entries to record transactions related to bad debts Moderate 20–30 6A Prepare entries for various notes receivable transactions Moderate 40–50 7A Prepare entries for various receivable transactions Complex 50–60 1B Prepare journal entries related to bad debts expense Simple 15–20 2B Compute bad debts amounts Moderate 20–25 3B Journalize entries to record transactions related to bad debts Moderate 20–30 4B Journalize transactions related to bad debts Moderate 20–30 5B Journalize entries to record transactions related to bad debts Moderate 20–30 6B Prepare entries for various notes receivable transactions Moderate 40–50 7B Prepare entries for various receivable transactions Complex 50–60 8-2 Copyright 2011 John Wiley Sons Inc Weygandt IFRS 1e Solutions Manual For Instructor Use Only WEYGANDT IFRS 1E CHAPTER 8 ACCOUNTING FOR RECEIVABLES Number SO BT Difficulty Time min BE1 1 C Simple 1–2 BE2 2 AP Simple 5–7 BE3 3 9 AN Simple 4–6 BE4 3 AP Simple 4–6 BE5 3 AP Simple 4–6 BE6 3 AP Simple 2–4 BE7 3 AN Simple 4–6 BE8 4 AP Simple 6–8 BE9 5 AP Simple 8–10 BE10 5 AP Moderate 8–10 BE11 6 AP Simple 2–4 BE12 9 AP Simple 4–6 DI1 3 AP Simple 2–4 DI2 4 AP Simple 4–6 DI3 5 8 AP Simple 6–8 DI4 9 AN Simple 4–6 EX1 2 AP Simple 8–10 EX2 2 AP Simple 8–10 EX3 3 AN Simple 8–10 EX4 3 AN Simple 6–8 EX5 3 AP Simple 6–8 EX6 3 AP Simple 6–8 EX7 4 AP Simple 4–6 EX8 4 AP Simple 6–8 EX9 4 AP Simple 6–8 EX10 5 6 AN Simple 8–10 EX11 5 6 AN Simple 6–8 EX12 5 6 8 AP Moderate 10–12 EX13 5 8 AP Simple 8–10 EX14 9 AP Simple 8–10 Copyright 2011 John Wiley Sons Inc Weygandt IFRS 1e Solutions Manual For Instructor Use Only 8-3 ACCOUNTING FOR RECEIVABLES Continued Number SO BT Difficulty Time min P1A 2 3 9 AN Simple 15–20 P2A 3 AN Moderate 20–25 P3A 2 3 AN Moderate 20–30 P4A 2 3 AN Moderate 20–30 P5A 3 AN Moderate 20–30 P6A 2 4 5 8 9 AN Moderate 40–50 P7A 2 4–8 AP Complex 50–60 P1B 2 3 9 AN Simple 15–20 P2B 3 AN Moderate 20–25 P3B 2 3 AN Moderate 20–30 P4B 2 3 AN Moderate 20–30 P5B 3 AN Moderate 20–30 P6B 2 4 5 8 9 AN Moderate 40–50 P7B 2 4–8 AP Complex 50–60 BYP1 3 E Moderate 20–25 BYP2 9 AN E Simple 10–15 BYP3 8 AP Simple 10–15 BYP4 4 AN Moderate 20–30 BYP5 3 E Simple 10–15 BYP6 3 E Simple 10–15 8-4 Copyright 2011 John Wiley Sons Inc Weygandt IFRS 1e Solutions Manual For Instructor Use Only 5-8 ylnO esU rotcurtsnI roF launaM snoituloS e1 SRFI tdnagyeW cnI snoS yeliW nhoJ 1102 thgirypoC B 9 8 7 6 5 4 3 2 1 r o a d E d D n D n E i C d D r a D a E r I e a x i e o e o x n o i e e n i c x e d n n s t t t s c d s c c e i d p p s e s e p e m p s e t o p e n n l o c s c s l r o c i b i l i t a a r r a e p r v n u a v i g n i s i r i r i s u s i a a g n i a f n i b e b e n t t i b b s u n b y Y a t e e e t e e t l t i c c h o i l i s h l t o y h o t e h e o n t o t e s s r o e h u s e n h i o i w h n h u h e w s e S C r i s o e v w v n e o e b c d t o P s t f e a a c o f e s e e c i u e o a b c b o t m a e i o f d r t n n l l e n d t v f y r r f e o t e o e m s a c t w a m e e s r m t r m t c r t e r O p e e i p r u i o b p e l e c e s e p a e r o e e l a n b a e n s n c i u s v n e n t j t c a t n a e i t i t r t n i e y t l t i t c o i v p e o e i d t o u h e y t v a c i s v s s p n e r e r e e i b r e e s a a r e e v l e i r b t e a m r s e C e s v c v e l e c c c e s e a o a c e o e o c e c o h n b r l o f i r o t o f a t l d u g v d h g a e t e n a a t u o n r t h i n b h n d i t i z d t z b o e e l e s s e n e e t w e e n Q Q Q Q Q B 8 8 8 8 8 l 1- 1- 9- 8- 2- K o 8 3 n o o m w l e s d g T e a x o Q Q Q Q Q Q Q Q C n 8- 8 8- - 8- 8 8 8- - - 8- o o 1 1 1 1 6 5 4 1 m m 7 6 2 0 p y r e h S e t B n u E s d i 8 o y 1- n O E E B Q E E D P P P B D B B Q Q E D B Q E D B B B E B Q b x 8 E 8 8 8 I 8 8 8 E I E E 8 8 8 I E 8 8 I E E E 8 E 8 p - 8 - - - 8 - - - 8 8 8 8 - - - 8 8 - - 8 8 8 8 - 8 - j l 1 1 1 1 - 7 7 7 - 1 1 7 - 1 5 - 1 3 e o 4 1- 9 3 2 3 B A A 1- 3 1 9- - 5 4 2 8- 1 1 6 5 4- - - 2- A c r 2 1 0 p t i p i n l v g i e c t a s h t e i a W P P E P P P E E P P E E E P P E o n 8 8- - 8 8 8 8 8 8 8 8 8 8 8- 8 8 8- - - n e 7 7 1- 7- 7- 7- 1- 1- 7- 7 9 8- - - 6 7 7 2 d b B A 2 B B A 3 2 B A B A E t D C P P D B P P E E P P E E P P E E B B Q P P n h e o 8 8 I E 8 8 8 8 8 8 8 8 8 8 8 8 E E 8 8 8 d e c m 6 1- - 8- 8 6 6- - 1 1- - 6 6 1- - - 1- 6 6- - 4 3- - 8 8 7- 3 1- - o- O i 4 - B A 1 0 B A 1 0 B A - - A A r s p A A 3 7 3 f i g o a - a n r A C n a P P P P P P P P h M t 8 8 8 8 8 8 8 8 n i i z a v 5 4 3- - - 2 1- - 1 6 4- - - a a a k e l p t A A A A A A B A A y i i s t o n n i e n g a s r A l E c y P P P P P P P P P P r s 8 8 8 8 8 8 8 8 8 8 x i o s 6 1- - 5 4 3- - - 2 1- - 6- 4 3- - e s r s B B B B B B B B B B c i s S e y s n t a h n e s d i s P r o E C C F b t o o i h n l i m m a e c m p n m s u a c E s C r i a n a a v i t l a s c i R l e a v e u t e a i p t o A o i n n r o t n a i l n y g s i s ELBAT YMONOXAT SMOOLB ANSWERS TO QUESTIONS 1 Accounts receivable are amounts owed by customers on account They result from the sale of goods and services Notes receivable represent claims that are evidenced by formal instruments of credit 2 Other receivables include nontrade receivables such as interest receivable loans to company officers advances to employees and income taxes refundable 3 Accounts Receivable 40 Interest Revenue 40 4 The essential features of the allowance method of accounting for bad debts are 1 Uncollectible accounts receivable are estimated and matched against revenue in the same accounting period in which the revenue occurred 2 Estimated uncollectibles are debited to Bad Debts Expense and credited to Allowance for Doubtful Accounts through an adjusting entry at the end of each period 3 Actual uncollectibles are debited to Allowance for Doubtful Accounts and credited to Accounts Receivable at the time the specific account is written off 5 Jerry Gatewood should realize that the decrease in cash realizable value occurs when estimated uncollectibles are recognized in an adjusting entry The write-off of an uncollectible account reduces both accounts receivable and the allowance for doubtful accounts by the same amount Thus cash realizable value does not change 6 The two bases of estimating uncollectibles are 1 percentage-of-sales and 2 percentage-of- receivables The percentage-of-sales basis establishes a percentage relationship between the amount of credit sales and expected losses from uncollectible accounts This method emphasizes the matching of expenses with revenues Under the percentage-of-receivables basis the balance in the allowance for doubtful accounts is derived from an analysis of individual customer accounts This method emphasizes cash realizable value 7 The adjusting entry under the percentage-of-sales basis is Bad Debts Expense 4100 Allowance for Doubtful Accounts 4100 The adjusting entry under the percentage-of-receivables basis is Bad Debts Expense 2300 Allowance for Doubtful Accounts 5800 – 3500 2300 8 Under the direct write-off method bad debt losses are not estimated and no allowance account is used When an account is determined to be uncollectible the loss is debited to Bad Debts Expense The direct write-off method makes no attempt to match bad debts expense to sales revenues or to show the cash realizable value of the receivables in the statement of financial position 9 From its own credit cards the DeVito Company may realize financing charges from customers who do not pay the balance due within a specified grace period National credit cards offer the following advantages 1 The credit card issuer makes the credit investigation of the customer 2 The issuer maintains individual customer accounts 8-6 Copyright 2011 John Wiley Sons Inc Weygandt IFRS 1e Solutions Manual For Instructor Use Only Questions Chapter 8 Continued 3 The issuer undertakes the collection process and absorbs any losses from uncollectible accounts 4 The retailer receives cash more quickly from the credit card issuer than it would from individual customers 10 The reasons companies are selling their receivables are 1 Receivables may be sold because they may be the only reasonable source of cash 2 Billing and collection are often time-consuming and costly It is often easier for a retailer to sell the receivables to another party with expertise in billing and collection matters 11 Cash 582000 Service Charge Expense 3 X 600000 18000 Accounts Receivable 600000 12 A promissory note gives the holder a stronger legal claim than one on an accounts receivable As a result it is easier to sell to another party Promissory notes are negotiable instruments which means they can be transferred to another party by endorsement The holder of a promissory note also can earn interest 13 The maturity date of a promissory note may be stated in one of three ways 1 on demand 2 on a stated date and 3 at the end of a stated period of time 14 The maturity dates are a March 13 of the next year b August 4 c July 20 and d August 30 15 The missing amounts are a 20000 b 9000 c 8 and d four months 16 If a financial institution uses 360 days rather than 365 days it will receive more interest revenue The reason is that the denominator is smaller which makes the fraction larger and therefore the interest revenue larger 17 When Cain Company has dishonored a note the lender can set up a receivable equal to the face amount of the note plus the interest due It will then try to collect the balance due or as much as possible If there is no hope of collection it will write-off the receivable 18 Each of the major types of receivables should be identified in the statement of financial position or in the notes to the financial statements Both the gross amount of receivables and the allowance for doubtful accounts should be reported If collectible within a year or the operating cycle whichever is longer these receivables are reported as current assets immediately above short-term investments 19 Net credit sales for the period are 814 X 400000 3256000 Copyright 2011 John Wiley Sons Inc Weygandt IFRS 1e Solutions Manual For Instructor Use Only 8-7 SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 8-1 a Accounts receivable b Notes receivable c Other receivables BRIEF EXERCISE 8-2 a Accounts Receivable 15200 Sales 15200 b Sales Returns and Allowances 3800 Accounts Receivable 3800 c Cash 11400 – 228 11172 Sales Discounts 11400 X 2 228 Accounts Receivable 15200 – 3800 11400 BRIEF EXERCISE 8-3 a Bad Debts Expense 35000 Allowance for Doubtful Accounts 35000 b Current assets Prepaid expenses 7500 Merchandise inventory 130000 Accounts receivable 600000 Less Allowance for doubtful Accounts 35000 565000 Cash 90000 Total current assets 792500 8-8 Copyright 2011 John Wiley Sons Inc Weygandt IFRS 1e Solutions Manual For Instructor Use Only BRIEF EXERCISE 8-4 a Allowance for Doubtful Accounts 5400 Accounts ReceivableRistau 5400 b 1 Before Write-Off 2 After Write-Off Accounts receivable ,700000 ,694600 Allowance for doubtful accounts 54000 48600 Cash realizable value ,646000 ,646000 BRIEF EXERCISE 8-5 Accounts ReceivableRistau 5400 Allowance for Doubtful Accounts 5400 Cash 5400 Accounts ReceivableRistau 5400 BRIEF EXERCISE 8-6 Bad Debts Expense [ 800000 – 45000 X 2] 15100 Allowance for Doubtful Accounts 15100 BRIEF EXERCISE 8-7 a Bad Debts Expense [ 450000 X 1 – 1500] 3000 Allowance for Doubtful Accounts 3000 b Bad Debts Expense [ 450000 X 1 800] 5300 BRIEF EXERCISE 8-8 a Cash ??50 – ?? 144 Service Charge Expense ??50 X 4 6 Sales 150 b Cash ??0000 – ??800 58200 Service Charge Expense ??0000 X 3 1800 Accounts Receivable 60000 Copyright 2011 John Wiley Sons Inc Weygandt IFRS 1e Solutions Manual For Instructor Use Only 8-9 BRIEF EXERCISE 8-9 Interest Maturity Date a 800 August 9 b 875 October 12 c 200 July 11 BRIEF EXERCISE 8-10 Maturity Date Annual Interest Rate Total Interest a May 31 9 9000 b August 1 8 600 c September 7 10 6000 BRIEF EXERCISE 8-11 Jan 10 Accounts Receivable 13600 Sales 13600 Feb 9 Notes Receivable 13600 Accounts Receivable 13600 BRIEF EXERCISE 8-12 Accounts Receivable Turnover Ratio 20B 20B 73 times 27B 28B ? 2 275B Average Collection Period for Accounts Receivable 365 days 50 days 73 times 8-10 Copyright 2011 John Wiley Sons Inc Weygandt IFRS 1e Solutions Manual For Instructor Use Only SOLUTIONS FOR DO IT REVIEW EXERCISES DO IT 8-1 The following entry should be prepared to bring the balance in the Allowance for Doubtful Accounts up from R6100 credit to R21700 credit 7 X R310000 Bad Debts Expense 15600 Allowance for Doubtful Accounts 15600 To record estimate of uncollectible accounts DO IT 8-2 To speed up the collection of cash Ronald could sell its accounts receivable to a factor Assuming the factor charges Ronald a 2 service charge it would make the following entry Cash 980000 Service Charge Expense 20000 Accounts Receivable 1000000 To record sale of receivables to factor DO IT 8-3 a The maturity date is September 30 When the life of a note is expressed i