About This Chapter
Receivables in Accounting Overview - Chapter Summary
Give your employees an overview of receivables in accounting with this online professional learning resource. The chapter consists of engaging video lessons that examine the purposes and processes of basic receivables concepts, such as:
- Revenue recognition
- Uncollectible accounts
- Receivables management
- Service costs
- Notes receivable
When you're employees finish a lesson, they'll have the opportunity to take a short quiz to reinforce their understanding of the material. These resources are available to access around-the-clock, and your employees can submit questions to our accounting experts if they need any help with the chapter concepts.
How It Helps
- Builds awareness: The lessons in this chapter help employees establish a thorough awareness of accounts receivables and their applications in accounting.
- Outlines important processes: Employees who complete the chapter will be able to explain several receivables processes and how they apply in accounting.
- Improves accounting skills: A thorough knowledge of receivables will contribute to your employees' growing accounting skill sets.
By the end of the chapter, your employees should be able to:
- Outline the accounts receivable process
- Explain the principles of revenue recognition
- Define the elements of bad debt, the allowance method and uncollectable accounts
- Discuss the purpose of receivables management
- Calculate/record service costs and warranties
- Assess interest and maturity dates in notes receivables
- Convert receivables to cash before they mature
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.
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.
3. Uncollectible 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 uncollectible accounts are and how to account for them.
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.
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.
6. Practical Application in Accounting: Calculating Warranty & Service Costs
Costs associated with warranty service are handled a little differently in terms of accounting. In this scenario, you'll have a chance to analyze a fictional company's data. Then you'll be asked to accurately project warranty and service costs.
7. 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.
8. 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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