Trade Receivables Flashcards
How do you determine the total risk of credit loss and the off-balance sheet risk for accounts receivable with an allowance for credit losses?
How do you calculate the ending accounts receivable balance when a specific percentage of sales is scheduled to be collecte/uncollected at month-end?
Steps to Determine Principal Reduction and Interest Receivable for Notes with Full Payment Applied to Principal
Rules for Calculating Total Interest Revenue on Notes Receivable with Discounts or Premiums
Rules for Calculating Allowance for Credit Losses Using the Aging of Accounts Receivable (A/R)
Rules for Factoring Accounts Receivable (With vs. Without Recourse)
How do you calculate the contingency value when discounted a note with recourse?
The contingency value is the maturity value
Steps to calculate cash proceeds from an interest bearing note receivable discounted to the bank
What amount should a company report as gross accounts receivable at year-end
How to calculate the cash a company receives from factoring accounts receivable with recourse, given a holdback percentage and a factoring fee?
For the cash basis of accounting, how should a company determine the amount of net sales revenue to report for the year
What are the JEs for writing off an uncollectible account under the CECL model. Is there a change in assets and NI after this?
How do you calculate accrued interest receivable for a note issued partway through the year?
How to calculate Cash collections from changes in accounts receivable?
What are the key characteristics of the direct write-off method for calculating credit loss expense?
What’s the difference between calculating cash proceeds for discounting a noninterest-bearing note vs an interest-bearing note?
What are the calculations and disclosures of a discounted note receivable with recourse, and key details to avoid mistakes?
What are the JEs for discounting notes receivable with/without recourse?
How do you calculate interest income for a noninterest-bearing note?
How do you calculate the credit loss expense given the net realizable value, beginning allowance, write-offs, recoveries, and ending accounts receivable balance
What’s the distinction between write-offs and credit loss expense in the CECL model
Write offs reduce allowance and credit loss expense increase the allowance
What are the types of transfers of accounts receivable
What is the relationship between Credit Loss Expense, Write offs, and the Allowance for Credit Losses?
When should a noninterest-bearing note receivable be recorded at face value vs. present value
What are the different methods for estimating credit losses
What are the differences between the Direct Write-Off Method and the Allowance Method for credit losses?
When should a note receivable be recorded at face value versus present value?
How do you calculate the present value for notes with a low stated interest rate vs. noninterest-bearing notes
When can a note be recorded at face value without discounting or applying a premium?
When do you apply a premium on a note receivable, and how do you calculate the total premium amount
When do you apply a discount on a note receivable, and how do you calculate the discount?
How Do You Calculate Cash Proceeds for a Partially Paid Discounted Note Receivable?
What is Pledging accounts receivable
How do you accrue interest on a short-term, interest-bearing note receivable?
How do you record receiving noninterest-bearing note issued in exchange for providing goods or services
How do you calculate the present value of remaining payments for a noninterest-bearing note with equal annual payments when one payment has already been made?
What is the journal entry for a factoring transaction where a company purchases receivables at a discount, applies an allowance for credit losses, and records a gain on purchase?
Calculate Payments & Interest on a Note
Proceeds on discounted noted receivable
