FAR08-Trade Receivables

Question 1

Answer 1

f a company is experiencing cash flow issues, it may sell (ie, discount) its notes receivable (N/R) to a bank for a fee. When a company discounts a note, the bank’s discount (ie, financing fee) is based on the maturity value (MV) of the N/R, the bank’s discount rate (ie, 10%), and the time remaining from the discount date until maturity date.

Question 2

Discounted Notes Receivables

Cuando vendes la nota

With Recourse – el vendedor se queda con el riezgo

Wothout Recourse- seria lo contrario

Answer 2

Question 3

AVERAGE AR BALANCE =
(ventas de unidades/365 dias ) x por los dias average

Question 4

JE- Write off or Reinstate and subsequently collect an Account Rec

Answer 4