ch08
DESCRIPTION
TRANSCRIPT
![Page 1: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/1.jpg)
Chapter 8-1
![Page 2: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/2.jpg)
Chapter 8-2
Reporting and Reporting and
Analyzing ReceivablesAnalyzing Receivables
Accounting, Third Edition
![Page 3: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/3.jpg)
Chapter 8-3
1. Identify the different types of receivables.
2. Explain how accounts receivable are recognized in the accounts.
3. Describe the methods used to account for bad debts.
4. Compute the interest on notes receivable.
5. Describe the entries to record the disposition of notes receivable.
6. Explain the statement presentation of receivables.
7. Describe the principles of sound accounts receivable management.
8. Identify ratios to analyze a company’s receivables.
9. Describe methods to accelerate the receipt of cash from receivables.
Study ObjectivesStudy ObjectivesStudy ObjectivesStudy Objectives
![Page 4: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/4.jpg)
Chapter 8-4
Types of Types of ReceivablesReceivables
Types of Types of ReceivablesReceivables
Accounts Accounts ReceivableReceivableAccounts Accounts
ReceivableReceivableNotes Notes
ReceivableReceivableNotes Notes
ReceivableReceivable
Statement Statement Presentation of Presentation of
ReceivablesReceivables
Statement Statement Presentation of Presentation of
ReceivablesReceivables
Managing Managing ReceivablesReceivables
Managing Managing ReceivablesReceivables
Reporting and Analyzing ReceivablesReporting and Analyzing ReceivablesReporting and Analyzing ReceivablesReporting and Analyzing Receivables
Accounts Accounts receivablereceivable
Notes Notes receivablereceivable
Other Other receivablesreceivables
Recognizing Recognizing accounts accounts receivablereceivable
Valuing Valuing accounts accounts receivablereceivable
Determining Determining maturity datematurity date
Computing Computing interestinterest
Recognizing Recognizing notes notes receivablereceivable
Valuing notes Valuing notes receivablereceivable
Disposing of Disposing of notes notes receivablereceivable
Balance Balance sheet and sheet and notesnotes
Income Income statementstatement
Extending Extending creditcredit
Establishing Establishing a payment a payment periodperiod
Monitoring Monitoring collectionscollections
Evaluating Evaluating liquidity of liquidity of receivablesreceivables
Accelerating Accelerating cash receiptscash receipts
![Page 5: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/5.jpg)
Chapter 8-5
Amounts due from individuals and other companies that are expected to be collected in cash.
Amounts owed by customers
that result from the sale of goods and services.
Accounts Accounts ReceivableReceivableAccounts Accounts
ReceivableReceivable
Types of ReceivablesTypes of ReceivablesTypes of ReceivablesTypes of Receivables
SO 1 Identify the different types of receivables.SO 1 Identify the different types of receivables.
Claims for which formal
instruments of credit are
issuedas proof of debt.
“Nontrade” (interest, loans to officers, advances
to employees, and income taxes
refundable).
Notes Notes ReceivableReceivable
Notes Notes ReceivableReceivable
Other Other ReceivableReceivable
ss
Other Other ReceivableReceivable
ss
![Page 6: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/6.jpg)
Chapter 8-6
Two accounting issues:
1. Recognizing accounts receivable.
2. Valuing accounts receivable.
Accounts ReceivableAccounts ReceivableAccounts ReceivableAccounts Receivable
SO 2 SO 2 Explain how accounts receivable are recognized in the accounts.
A service organization records a receivable when it provides service on account. A merchandiserrecords accounts receivable at the point of sale of merchandise on account.
Recognizing Accounts Receivable
![Page 7: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/7.jpg)
Chapter 8-7
Illustration:Illustration: Assume that you use your JCPenney Company credit card to purchase clothing with a sales price of $300. Assuming that you owe $300 at the end of the month, and JCPenney charges 1.5% per month on the balance due. Prepare the entry to record the sale and the adjusting entry to record interest revenue.
Accounts receivable 300.00
Sales 300.00
SO 2 Explain how companies recognize accounts receivable.SO 2 Explain how companies recognize accounts receivable.
Accounts receivable 4.50
Interest revenue (300 x 1.5%) 4.50
Accounts ReceivableAccounts ReceivableAccounts ReceivableAccounts Receivable
![Page 8: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/8.jpg)
Chapter 8-8
Valuing Accounts Receivables
Classification
Valuation (net realizable value)
Uncollectible Accounts Receivable
Sales on account raise the possibility of accounts not being collected
Accounts ReceivableAccounts ReceivableAccounts ReceivableAccounts Receivable
SO 3 Describe the methods used to account for bad debts.SO 3 Describe the methods used to account for bad debts.
![Page 9: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/9.jpg)
Chapter 8-9
Allowance MethodAllowance MethodLosses are estimated:
better matching.receivable stated at net realizable value.required by GAAP.
Methods of Accounting for Uncollectible Accounts
Direct Write-OffDirect Write-OffTheoretically
undesirable:no matching.receivable not stated at net realizable value.not acceptable for financial reporting.
Valuing Accounts ReceivableValuing Accounts ReceivableValuing Accounts ReceivableValuing Accounts Receivable
SO 3 Describe the methods used to account for bad debts.SO 3 Describe the methods used to account for bad debts.
![Page 10: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/10.jpg)
Chapter 8-10
Illustration:Illustration: Assume, for example, that Warden Co. writes off M. E. Doran’s $200 balance as uncollectible on December 12. Warden’s entry is:
Bad debt expense 200
Accounts receivable 200
Valuing Accounts ReceivableValuing Accounts ReceivableValuing Accounts ReceivableValuing Accounts Receivable
Direct Write-off Method for Uncollectible Accounts
SO 3 Describe the methods used to account for bad debts.SO 3 Describe the methods used to account for bad debts.
![Page 11: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/11.jpg)
Chapter 8-11
Valuing Accounts ReceivableValuing Accounts ReceivableValuing Accounts ReceivableValuing Accounts Receivable
Allowance Method for Uncollectible Accounts
1. Companies estimate uncollectible accounts receivable.
2. To record estimated uncollectibles, companies debit Bad Debts Expense and credit Allowance for Doubtful Accounts (a contra-asset account).
3. When companies write off specific uncollectible accounts, they debit Allowance for Doubtful Accounts and credit Accounts Receivable.
SO 3 Describe the methods used to account for bad debts.SO 3 Describe the methods used to account for bad debts.
![Page 12: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/12.jpg)
Chapter 8-12
Illustration: Assume that Hampson Furniture has credit sales of $1,200,000 in 2010, of which $200,000 remains uncollected at December 31. The credit manager estimates that $12,000 of these sales will prove uncollectible.
Valuing Accounts ReceivableValuing Accounts ReceivableValuing Accounts ReceivableValuing Accounts Receivable
Bad debts expense 12,000Dec. 31 Allowance for doubtful accounts
12,000
SO 3 Describe the methods used to account for bad debts.SO 3 Describe the methods used to account for bad debts.
![Page 13: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/13.jpg)
Chapter 8-13
Valuing Accounts ReceivableValuing Accounts ReceivableValuing Accounts ReceivableValuing Accounts Receivable
Illustration 8-3Presentation of allowancefor doubtful accounts
SO 3 Describe the methods used to account for bad debts.SO 3 Describe the methods used to account for bad debts.
![Page 14: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/14.jpg)
Chapter 8-14
Illustration: Assume that the vice-president of financeof Hampson Furniture on March 1, 2011, authorizes a write-off of the $500 balance owed by R. A. Ware. The entry to record the write-off is:
Valuing Accounts ReceivableValuing Accounts ReceivableValuing Accounts ReceivableValuing Accounts Receivable
Allowance for doubtful accounts 500Mar. 1
Accounts receivable500
Recording Write-off of an Uncollectible Account
Illustration 8-4
SO 3 Describe the methods used to account for bad debts.SO 3 Describe the methods used to account for bad debts.
![Page 15: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/15.jpg)
Chapter 8-15
Illustration: Assume that on July 1, R. A. Ware pays the $500 amount that Hampson Furniture had written off on March 1. Hampson makes these entries:
Valuing Accounts ReceivableValuing Accounts ReceivableValuing Accounts ReceivableValuing Accounts Receivable
Accounts receivable 500Jul. 1
Allowance for doubtful accounts 500
Recovery of an Uncollectible Account
Cash 5001
Accounts receivable500
SO 3 Describe the methods used to account for bad debts.SO 3 Describe the methods used to account for bad debts.
![Page 16: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/16.jpg)
Chapter 8-16
Estimating the Allowance
Valuing Accounts ReceivableValuing Accounts ReceivableValuing Accounts ReceivableValuing Accounts Receivable
Under the percentage of receivables basis, management establishes a percentage relationship between the amount of receivables and expected losses from uncollectible accounts.
SO 3 Describe the methods used to account for bad debts.SO 3 Describe the methods used to account for bad debts.
![Page 17: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/17.jpg)
Chapter 8-17
Under percentage of receivables basis, management establishes a percentage relationship between the amount of receivables and expected losses from uncollectible accounts.
Valuing Accounts ReceivableValuing Accounts ReceivableValuing Accounts ReceivableValuing Accounts Receivable
Illustration 8-6
SO 3 Describe the methods used to account for bad debts.SO 3 Describe the methods used to account for bad debts.
![Page 18: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/18.jpg)
Chapter 8-18
Illustration: Assume the unadjusted trial balance shows Allowance for Doubtful Accounts with a credit balance of $528. Prepare the adjusting entry assuming $2,228 is the estimate of uncollectible receivables from the aging schedule.
Valuing Accounts ReceivableValuing Accounts ReceivableValuing Accounts ReceivableValuing Accounts Receivable
Bad debts expense 1,700Dec. 31 Allowance for doubtful accounts
1,700
Estimating the Allowance
Illustration 8-7 Bad debts accounts after posting
![Page 19: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/19.jpg)
Chapter 8-19
Valuing Accounts ReceivableValuing Accounts ReceivableValuing Accounts ReceivableValuing Accounts Receivable
Illustration 8-8 Note disclosure of accounts receivable
SO 3 Describe the methods used to account for bad debts.SO 3 Describe the methods used to account for bad debts.
![Page 20: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/20.jpg)
Chapter 8-20
![Page 21: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/21.jpg)
Chapter 8-21
Notes ReceivableNotes ReceivableNotes ReceivableNotes Receivable
Companies may grant credit in exchange for a promissory note. A promissory note is a written promise to pay a specified amount of money on demand or at a definite time.
Promissory notes may be used:
1. when individuals and companies lend or borrow money,
2. when amount of transaction and credit period exceed normal limits, or
3. in settlement of accounts receivable.
![Page 22: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/22.jpg)
Chapter 8-22
Illustration 8-9
Notes ReceivableNotes ReceivableNotes ReceivableNotes Receivable
To the Payee, the promissory note is a note receivable.
To the Maker, the promissory note is a note payable.
![Page 23: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/23.jpg)
Chapter 8-23
Determining the Maturity Date
SO 4 Compute the interest on notes receivable.SO 4 Compute the interest on notes receivable.
Notes ReceivableNotes ReceivableNotes ReceivableNotes Receivable
Note expressed in terms of
Months
Days
Computing InterestIllustration 8-
10
![Page 24: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/24.jpg)
Chapter 8-24
Computing Interest
SO 4 Compute the interest on notes receivable.SO 4 Compute the interest on notes receivable.
Notes ReceivableNotes ReceivableNotes ReceivableNotes Receivable
When counting days, omit the date the note is issued, but include the due date.
Illustration 8-11
![Page 25: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/25.jpg)
Chapter 8-25
Recognizing Notes Receivable
SO 4 Compute the interest on notes receivable.SO 4 Compute the interest on notes receivable.
Notes ReceivableNotes ReceivableNotes ReceivableNotes Receivable
Illustration: Assuming that Brent Company wrote a $1,000, two-month, 8% promissory note dated May 1, to settle an open account. Prepare entry would Wilma Company makes for the receipt of the note.
Notes receivable 1,000May 1
Accounts receivable 1,000
![Page 26: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/26.jpg)
Chapter 8-26
Valuing Notes Receivable
Notes ReceivableNotes ReceivableNotes ReceivableNotes Receivable
Like accounts receivable, companies report short-term notes receivable at their cash (net) realizable value.
Estimation of cash realizable value and bad debts expense are done similarly to accounts receivable.
Allowance for Doubtful Accounts is used.
SO 4 Compute the interest on notes receivable.SO 4 Compute the interest on notes receivable.
![Page 27: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/27.jpg)
Chapter 8-27
Disposing of Notes Receivable
SO 5 Describe the entries to record the disposition of notes SO 5 Describe the entries to record the disposition of notes receivable.receivable.
Notes ReceivableNotes ReceivableNotes ReceivableNotes Receivable
1. Notes may be held to their maturity date.
2. Maker may default and payee must make an adjustment to the account.
3. Holder speeds up conversion to cash by selling the note receivable.
![Page 28: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/28.jpg)
Chapter 8-28
Honor of Notes Receivable
SO 5 Describe the entries to record the disposition of notes SO 5 Describe the entries to record the disposition of notes receivable.receivable.
Notes ReceivableNotes ReceivableNotes ReceivableNotes Receivable
A note is honored when its maker pays it in full at its maturity date.
Dishonor of Notes Receivable
A dishonored note is not paid in full at maturity. Dishonored note receivable is no longer negotiable.
Disposing of Notes Receivable
![Page 29: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/29.jpg)
Chapter 8-29
Illustration: Assume that Wolder Co. lends Higley Inc. $10,000 on June 1, accepting a five-month, 9% interest note. If Wolder presents the note to Higley Inc. on November 1, the maturity date, Wolder’s entry to record the collection is:
Honor of Notes Receivable
SO 5 Describe the entries to record the disposition of notes SO 5 Describe the entries to record the disposition of notes receivable.receivable.
Notes ReceivableNotes ReceivableNotes ReceivableNotes Receivable
Cash 10,375Jun. 1
Notes receivable 10,000 Interest revenue
375($10,000 x 9% x 5/12 = $ 375)
![Page 30: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/30.jpg)
Chapter 8-30
Illustration: Suppose instead that Wolder Co. prepares financial statements as of September 30. Prepare the adjusting entry by Wolder is for four months ending Sept. 30.
Accrual of Interest
SO 5 Describe the entries to record the disposition of notes SO 5 Describe the entries to record the disposition of notes receivable.receivable.
Notes ReceivableNotes ReceivableNotes ReceivableNotes Receivable
Interest receivable 300Sept. 1 Interest revenue 300
($10,000 x 9% x 4/12 = $ 300)
![Page 31: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/31.jpg)
Chapter 8-31
Illustration: Prepare the entry Wolder’s would make to record the honoring of the Higley note on November 1.
Honor of Notes Receivable
SO 5 Describe the entries to record the disposition of notes SO 5 Describe the entries to record the disposition of notes receivable.receivable.
Notes ReceivableNotes ReceivableNotes ReceivableNotes Receivable
Cash 10,375Nov. 1
Notes receivable 10,000 Interest receivable
300 Interest revenue 75
![Page 32: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/32.jpg)
Chapter 8-32
Financial Statement PresentationFinancial Statement PresentationFinancial Statement PresentationFinancial Statement Presentation
SO 6 Explain the statement presentation of receivables.SO 6 Explain the statement presentation of receivables.
Illustration 8-12 Balance sheet presentation of receivables
![Page 33: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/33.jpg)
Chapter 8-33
Managing Receivables
Financial Statement PresentationFinancial Statement PresentationFinancial Statement PresentationFinancial Statement Presentation
SO 7 Describe the principles of sound accounts receivable SO 7 Describe the principles of sound accounts receivable management.management.
Managing accounts receivable involves five steps:
1. Determine to whom to extend credit.
2. Establish a payment period.
3. Monitor collections.
4. Evaluate the liquidity of receivables.
5. Accelerate cash receipts from receivables when necessary.
![Page 34: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/34.jpg)
Chapter 8-34
![Page 35: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/35.jpg)
Chapter 8-35
Evaluating Liquidity of Receivables
SO 8 Identify ratios to analyze a company’s receivables.SO 8 Identify ratios to analyze a company’s receivables.
Financial Statement PresentationFinancial Statement PresentationFinancial Statement PresentationFinancial Statement Presentation
Illustration 8-14
![Page 36: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/36.jpg)
Chapter 8-36
Evaluating Liquidity of Receivables
Accounts Receivable Turnover is used to:
Assess the liquidity of the receivables.
Measure the number of times, on average, a company collects receivables during the period.
Variant of the accounts receivable turnover ratio is average collection period in terms of days.
Used to assess effectiveness of credit and collection policies.
Collection period should not exceed credit term period.
SO 8 Identify ratios to analyze a company’s receivables.SO 8 Identify ratios to analyze a company’s receivables.
Financial Statement PresentationFinancial Statement PresentationFinancial Statement PresentationFinancial Statement Presentation
![Page 37: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/37.jpg)
Chapter 8-37
Accelerating Cash Receipts
Three reasons for the sale of receivables:
1. Size.
2. Companies may sell receivables because they may be the only reasonable source of cash.
3. Billing and collection are often time-consuming and costly.
SO 9 Describe methods to accelerate the receipt of cash from SO 9 Describe methods to accelerate the receipt of cash from receivables.receivables.
Financial Statement PresentationFinancial Statement PresentationFinancial Statement PresentationFinancial Statement Presentation
![Page 38: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/38.jpg)
Chapter 8-38
National Credit Card Sales
Three parties involved when credit cards are used.
1. credit card issuer,
2. retailer, and
3. customer.
SO 9 Describe methods to accelerate the receipt of cash from SO 9 Describe methods to accelerate the receipt of cash from receivables.receivables.
Financial Statement PresentationFinancial Statement PresentationFinancial Statement PresentationFinancial Statement Presentation
The retailer pays the credit card issuer a fee of 2% to 4% of the invoice price for its services.
![Page 39: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/39.jpg)
Chapter 8-39
National Credit Card Sales
Illustration: Morgan Marie purchases $1,000 of compact discs for her restaurant from Sondgeroth Music Co., and she charges this amount on her Visa First Bank Card. The service fee that First Bank charges Sondgeroth Music is 3%.
SO 9 Describe methods to accelerate the receipt of cash from SO 9 Describe methods to accelerate the receipt of cash from receivables.receivables.
Financial Statement PresentationFinancial Statement PresentationFinancial Statement PresentationFinancial Statement Presentation
Cash 970
Service charge expense 30
Sales1,000
![Page 40: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/40.jpg)
Chapter 8-40
Sale of Receivables to a Factor
Illustration: Assume that Hendredon Furniture factors $600,000 of receivables to Federal Factors, Inc. Federal Factors assesses a service charge of 2% of the amount of receivables sold.
SO 9 Describe methods to accelerate the receipt of cash from SO 9 Describe methods to accelerate the receipt of cash from receivables.receivables.
Financial Statement PresentationFinancial Statement PresentationFinancial Statement PresentationFinancial Statement Presentation
Cash 588,000
Service charge expense 12,000
Accounts receivable600,000
A factor is a finance company or bank that buys receivables from businesses for a fee and then collects the payments directly from the customers.
![Page 41: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/41.jpg)
Chapter 8-41
![Page 42: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/42.jpg)
Chapter 8-42 SO 9 Describe methods to accelerate the receipt of cash from SO 9 Describe methods to accelerate the receipt of cash from
receivables.receivables.
Financial Statement PresentationFinancial Statement PresentationFinancial Statement PresentationFinancial Statement Presentation
![Page 43: Ch08](https://reader033.vdocuments.us/reader033/viewer/2022061306/54b406564a79593a7b8b45cc/html5/thumbnails/43.jpg)
Chapter 8-43
“Copyright © 2009 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.”
CopyrightCopyrightCopyrightCopyright