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Ch 7: Receivables in Accounting

About This Chapter

Watch video lessons and learn about accounts receivable methods, processes and definitions. The quizzes that follow each of the lessons can help you gauge your comprehension of the materials.

About This Chapter

Accounts receivable is defined as money that is owed by a customer for products or services rendered on credit. As you'll find out in this chapter, monies could be due in a few days, but some customers may have up to a year to pay. You'll also learn how a company or individual may grant this type of transaction for frequent or long-standing customers to save them the bother of paying for each and every purchase as it occurs. Watching these receivables in accounting video lessons could help you to better understand:

  • How to provide examples of accounts receivable
  • The definition of revenue recognition
  • What to do in the case of uncollectable accounts

Video Objective
Accounts Receivable: Definition, Process and Examples Explain the process for recording accounts receivable.
What is Revenue Recognition? - Principles, Process and Examples Learn about revenue recognition processes and give examples.
Uncollectable Accounts, The Allowance Method and Bad Debt Discover ways of accounting for non-paying customers.
Receivables Management: Definition and Purpose Explain the reasons for receivables management.
Recording Warranty and Service Costs Learn the proper processes for recording service costs.
Notes Receivable: Definition, Maturity Date and Interest Discover how to compute the maturity date and interest of receivables.
Converting Receivables to Cash Before Maturity Explain how the cash conversion process occurs.

7 Lessons in Chapter 7: Receivables in Accounting
Accounts Receivable: Definition, Process & Examples

1. Accounts Receivable: Definition, Process & Examples

Not all purchases of goods or services are paid for at the time of the purchase. Those that aren't are called accounts receivable. In this lesson, you will learn the basics about accounts receivable.

What is Revenue Recognition? - Principles, Process & Examples

2. What is Revenue Recognition? - Principles, Process & Examples

Did you know that when it comes to reporting revenue in the accounting records of a company, there is a certain time that it needs to be done? In this lesson, we are going to discuss the timing of revenue reporting and the Revenue Recognition Concept.

Uncollectable Accounts, the Allowance Method & Bad Debt

3. Uncollectable Accounts, the Allowance Method & Bad Debt

Do you think that every customer that opens a credit account will pay off their balance completely? In the real world, not every customer does. In this lesson, you are going to learn what uncollectable accounts are and how to account for them.

Receivables Management: Definition & Purpose

4. Receivables Management: Definition & Purpose

Accounts receivable are a completely different part of the credit column for many companies, and receivables management practices help keep track of them. This lesson explains what they are and why it is so important to have receivables management in place.

Recording Warranty and Service Costs

5. Recording Warranty and Service Costs

Under the best of circumstances, accounting should go in one direction, focused on keeping the customer happy with goods. But what happens to the accounting records when one of those goods is returned? This lesson explains.

Notes Receivable: Definition, Maturity Date & Interest

6. Notes Receivable: Definition, Maturity Date & Interest

Receivables are assets that a company owns. There are various items that are considered receivables. In this lesson, we are going to discuss notes receivable and the calculation of both the maturity date and the amount of interest charged on the note.

Converting Receivables to Cash Before Maturity

7. Converting Receivables to Cash Before Maturity

Cash-strapped businesses can sometimes turn to their receivables for an infusion of money. In this lesson, you'll learn how companies can convert receivables to cash before they're due to be paid.

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