中级财会Cash and Receivables现金及应收账款

1、Chapter 2 Cash and Receivables第二章第二章 现金及应收款现金及应收款Part A Cash and Cash Equivalents In this part, we are going to learn:Cash Cash equivalentsCash Cash includes currency and coins, balances in checking accounts, and items acceptable for deposit in these accounts. 现金包括纸币、硬币、银行支票存款账户的余额以及现金包括纸币、硬币、银行支票存款

2、账户的余额以及可以存入这些账户的款项。可以存入这些账户的款项。 Simply, “cash”=money hold in hand + money in the bankCash Equivalents Cash Equivalents include money market funds, treasury bills, and commercial paper. 现金等价物包括货币市场基金、国库券和商业票据等。现金等价物包括货币市场基金、国库券和商业票据等。 The maturity date (到期日到期日) for cash equivalents should be no longe

3、r than three months from the date of purchase.Part B Current Receivables 短期应收款短期应收款 In this part, we are going to learn:The classification of “Receivables”Accounts receivableNotes receivableReceivables Receivables are a companys claims to the future collection of cash, other assets or services. 应收款是

4、企业在未来要求收取现金、其他应收款是企业在未来要求收取现金、其他资产或者服务的权利。资产或者服务的权利。ReceivablesTrade receivables 商业应收款商业应收款: resulting from the sale of goods or services.Nontrade receivables 非商业应收款非商业应收款: not resulting from the sale of goods or services.Exp. Accounts ReceivableExp. Interest ReceivableAccounts Receivable Accounts r

5、eceivable are coming from credit sale (赊销赊销). Accounts receivable are supported by the customers credit and an invoice. Notes receivable are supported by the note and an invoice. Accounts receivable are classified as current assets, because their collection period (收款期收款期) is usually less than one y

6、ear. AR are recognized on the day when we deliver the goods/services. Initial Valuation of Accounts Receivable 应收账款的初始计量应收账款的初始计量 Two parts will be discussed:Trade discountsCash discountsTrade Discounts Trade Discounts: a percentage reduction from the list price that companies offer to their custome

7、rs. (price reduction) 商业折扣商业折扣：公司为顾客提供的、从零售价中扣减一定：公司为顾客提供的、从零售价中扣减一定百分比的折扣。百分比的折扣。(价格扣减价格扣减) Trade discounts are often offered to those customers who purchase goods/services in large quantity. In accounting, we use “net price” to record AR and sales revenue.Net price=full price trade discountTrade D

8、iscounts Exp. A company sells a machine at a price of $2,500, but sells it to a customer at list less a 10% discount. (credit sale) Net price=full price-trade discount=$2,500-$250010%=$2,250 Dr. Accounts Receivable 2,250 Cr. Sales Revenue 2,250 Cash Discounts Cash Discounts: often called sales disco

9、unts, represent reductions not in the selling price of a good or service but in the amount to be paid by a credit customer if paid within a specified period of time. (reduction in payment) 现金折扣现金折扣：又称为销售折扣，它并不是对商品或劳务：又称为销售折扣，它并不是对商品或劳务销售价格的减少，而是对赊购客户在特定的期间内付销售价格的减少，而是对赊购客户在特定的期间内付款而给予应付款金额的减少。款而给予应付

10、款金额的减少。(应付款的减少应付款的减少) It is a discount intended to provide incentive for quick payment. (encourage customers to pay the cash as soon as possible)Cash Discounts Exp. Our company offered cash discount: 2/10, n/30.2/10, meaning a 2% discount if paid within 10 days. (10 days-discount period)n/30, meanin

11、g no discount if paid within 30 days. Two ways to record cash discounts:Gross methodNet methodGross method 总价法总价法 How to use gross method:At first, use the full price to record accounts receivable. If the cash discount is realized (within discount period), then put the discount amount into “sales di

12、scount”.Example of gross method Our companys credit terms are stated as 2/10, n/30. On Oct. 5, 2011, we sold merchandise at a price of $20,000. The customer paid 70% of its total price on Oct. 14 and the remaining balance of $6,000 on Nov. 4.Net method 净价法净价法 How to use net method:At first, use the

13、net price to record accounts receivable. If the cash discount is not realized (beyond discount period), then record the discount amount as “interest revenue”.Example of net method Our companys credit terms are stated as 2/10, n/30. On Oct. 5, 2011, we sold merchandise at a price of $20,000. The cust

14、omer paid 70% of its total price on Oct. 14 and the remaining balance of $6,000 on Nov. 4.Gross Method V.S. Net MethodThe gross method supposes all the cash discounts can not be taken. 总价法假设所有的现金折扣都不能被享总价法假设所有的现金折扣都不能被享受。受。But if cash discount is taken, then put the discount amount into “sales disco

15、unts”.The net method supposes all the cash discounts can be taken. 净价法假设所有的现金折扣都可以被享受。净价法假设所有的现金折扣都可以被享受。But if cash discount is not taken, then put the discount amount into “interest revenue”.Gross Method V.S. Net Method In America, most companies use the gross method because its easier than the ne

16、t method. But in China, only the gross method is allowed to use.Comparing trade discounts & cash discountsTrade discounts are often offered to those customers who purchase goods/services in large quantity.Cash discounts are offered to those customers who pay the cash within the discount period.T

17、he purpose of trade discounts is to encourage large purchase.The purpose of cash discounts is to encourage quick payment.Comparing trade discounts & cash discountsTrade discounts are expressed as percentage reduction from price. (exp. 20% of trade discount)Cash discounts are expressed as terms o

18、f 2/10, n/30.Trade discounts only has one way to record: use the net price to record the accounts receivable and the revenue.Cash discounts has two ways to record: gross method & net method.l Exercise: P85 E2-4Uncollectible accounts receivable Uncollectible accounts receivable(无法收回的无法收回的应收账款应收账款

19、) or bad debts(坏账坏账): receivables that some customers are either unable or unwilling to pay. The costs which arise from uncollectible accounts are bad debt expense(坏账损失坏账损失).Bad debtscauses Bad debt expenseUncollectible accounts receivable Two ways to record bad debts: Direct write-off method(直接转销法直

20、接转销法) Allowance method(备抵法备抵法) Two questions we need to focus on:pWhen to use this method?pHow to use this method?Direct write-off method 直接转销法直接转销法 When to use direct write-off method?If uncollectible accounts receivable are immaterial (amount of bad debts is small)Or if we can not reliably estimat

21、e 不能合理估计不能合理估计 the amount of uncollectible accounts receivable How to use direct write-off method?When accounts receivable actually become bad debts, just simply increase bad debt expense and decrease accounts receivable. 100% sure money can not be received Dr: bad debt expense1. Cr: accounts receiv

22、ableExample of direct write-off method In 2011, one of our customers went bankrupt (破产破产), he was unable to pay the debt $10,000 (which were our companys accounts receivable). Suppose $10,000 are immaterial amount for our company.Use direct write-off methodDr. Bad debt expense 10,000 Cr. Accounts re

23、ceivable 10,000Allowance method 备抵法备抵法 When to use allowance method?If uncollectible accounts receivable are material amount (amount of bad debts is large)And if we can reliably estimate 能合理估计能合理估计 the amount of uncollectible accounts receivable How to use allowance method?First estimate the amount

24、of probable bad debts 估计估计可能发生坏账的金额可能发生坏账的金额Put it into “allowance for uncollectible accounts” （坏账准备坏账准备） Dr: bad debt expense1. Cr: allowance for UAAllowance method Allowance for uncollectible accountsAlso called “allowance for doubtful accounts”A contra account (备抵账户备抵账户) to accounts receivableAll

25、owance for uncollectible accountsDr. DecreaseBeginning Bal.Cr.IncreaseEnding Bal.Allowance method Three events under allowance method: (备抵备抵法下的法下的“三个三个”会计事件会计事件) Estimate the amount of probable bad debts 估计可能发生坏账的金额估计可能发生坏账的金额 When accounts are deemed uncollectible 坏账真实发生坏账真实发生1. When previously wri

26、tten-off accounts are collected 之前的坏账重新收回之前的坏账重新收回Estimate the amount of probable bad debts Three ways to estimate the amount of future bad debts: 三种估计坏账的方法三种估计坏账的方法 Income statement approach 利润表法利润表法 Balance sheet approach 资产负债表法资产负债表法 A combination of two approaches 两种方法两种方法的组合的组合Income statement

27、approach 利润表法利润表法 How to use income statement approach?We estimate bad debt expense as a percentage of each periods net credit sales. (按每期净赊销销按每期净赊销销售收入的百分比估计售收入的百分比估计“坏账费用坏账费用”)Bad debt expense=credit sales P%Example of income statement approach P55 illustration 2-3Bad debt expense=credit sales P%I

28、n this case, Bad debt expense=$1,200,000 2%=$24,000Dr. Bad debt expense 24,000 Cr. Allowance for uncollectible accounts 24,000Accounts receivable $305,000Less: Allowance for uncollectible accounts (24,000)Net accounts receivable (NRV of AR) $281,000It will be reported in the balance sheet.Balance sh

29、eet approach 资产负债表法资产负债表法How to use balance sheet approach? (two ways)We estimate uncollectible accounts as a percentage of the receivable balance. (按总应收账按总应收账款余额的百分比估计坏账款余额的百分比估计坏账)Allowance for uncollectible accounts=the total AR P%Or, applying different percentages to accounts receivable balances

30、. (对不同应收账款余额应用不同对不同应收账款余额应用不同的百分比的百分比)Allowance for uncollectible accounts=AR1 P1%+AR2 P2%+ AR3 P3%+ ARn Pn%1. AR1, AR2, AR3, , ARn are different accounts receivable balances depending on the length of time outstanding. 按应收账款的账龄长短划分不同的按应收账款的账龄长短划分不同的余额余额 (exp. P56)Example of balance sheet approach E

31、xp. P56 illustration 2-3AAccounts Receivable Aging Schedule 应收账款账龄应收账款账龄分析表分析表Allowance for uncollectible accounts=AR1 P1%+AR2 P2%+ AR3 P3%+ ARn Pn%Allowance for uncollectible accounts=AR1 P1%+AR2 P2%+ AR3 P3%+ AR4 P4%=220,0005%+50,00010%+25,00020%+10,00045%=25,500The longer the account receivable h

32、as been outstanding the more likely it will prove uncollectible. 应收账款拖欠的时间越长，越有可能成应收账款拖欠的时间越长，越有可能成为坏账。（坏账提取比率应该越大）为坏账。（坏账提取比率应该越大）Example of balance sheet approach Exp. P56 illustration 2-3AAllowance for uncollectible accounts=$25,500Dr. Bad debt expense 25,500 Cr. Allowance for uncollectible accou

33、nts 25,500Here, $25,500 is the ending bal. for “allowance for uncollectible accounts”Allowance for uncollectible accountsDr. DecreaseBeginning Bal. 0Cr. 25,500IncreaseEnding Bal. 25,500First year of operationsExample of balance sheet approach lets suppose it was not the first year of operations. The

34、 beginning credit bal. for the allowance account was $4,000.Dr. Bad debt expense 21,500 Cr. Allowance for uncollectible accounts 21,500Allowance for uncollectible accountsDr. DecreaseBeginning Bal. 4,000Cr. 21,500IncreaseEnding Bal. 25,500Example of balance sheet approach lets suppose it was not the

35、 first year of operations. The beginning debit bal. for the allowance account was $4,000.Dr. Bad debt expense 29,500 Cr. Allowance for uncollectible accounts 29,500Allowance for uncollectible accountsBeginning Bal. 4,000Dr. DecreaseCr. 29,500IncreaseEnding Bal. 25,500A combination of two approaches

36、Some companies use a combination of two approaches. 有些公司使用两种方法的组合有些公司使用两种方法的组合。They use the income statement approach at the end of every month.But they use the balance sheet approach at the end of the year.A combination of two approachesExp. Suppose 2011 is the first year of operation. During 2011,

37、 sales on credit are $1,200,000. The company anticipates that 2% of all credit sales will finally become uncollectible.Using income statement approach at the end of every month:Bad debt expense=S12%+S22%+.+S122%=(S1+ S2+ S12)2%=SYear2%Bad debt expense=$1,200,0002%=24,000Dr. Bad debt expense 24,0001.

38、 Cr. Allowance for uncollectible accounts 24,000A combination of two approachesUse balance sheet approach at the end of the year:Allowance for uncollectible accounts=AR1 P1%+AR2 P2%+ AR3 P3%+ ARn Pn%Allowance for uncollectible accounts=220,0005%+50,00010%+25,00020%+10,00045%=25,500Age GroupAmountP%0

39、-60 days220,0005%61-90 days50,00010%91-120 days25,00020%Over 120 days10,00045%A combination of two approachesAllowance for uncollectible accounts=220,0005%+50,00010%+25,00020%+10,00045%=25,500 (ending bal.)Suppose this year is the companys first year, so beginning bal.=0.Allowance for uncollectible

40、accountsDr. DecreaseBeginning Bal. 0Cr. 24,000 1,500Ending Bal. 25,500Using income statement approachUsing balance sheet approachA combination of two approachesDr. bad debt expense 1,500 Cr. Allowance for uncollectible accounts 1,500Accounts receivable $305,000Less: Allowance for uncollectible accou

41、nts IS (24,000) Allowance for uncollectible accounts BS (1,500)Net accounts receivable $279,500When accounts are deemed uncollectible 坏账真实发生坏账真实发生If we are sure that part of accounts receivable will not be collected, then record it as a debit to allowance for uncollectible accounts and a credit to a

42、ccounts receivable.100% sure money can not be received (actually become bad debts)Dr: Allowance for UA Cr: Accounts receivableExp. Assume that actual bad debts in 2012 are $25,000, (we are 100% sure that in 2012, $25,000 will not be received)Dr. Allowance for uncollectible accounts 25,000 Cr. Accoun

43、ts receivable 25,000When previously written-off accounts are collected 之前的坏账重新收回之前的坏账重新收回Sometimes, accounts receivable that have become bad debts will be collected in part or in full.When this happens, the receivable and the allowance should be reinstated. 当坏账重新收回时，应当坏账重新收回时，应收账款和坏账准备应该予以恢复。收账款和坏账准

44、备应该予以恢复。Exp. Assume that the previous bad debts of $1,200 is collected this year.Dr. Accounts receivable 1,200 Cr. Allowance for uncollectible account 1,200Dr. cash 1,200 Cr. Accounts receivable 1,200Exercise P86 E2-9 P86 E2-8 P86 E2-11Financing with receivables In this part, we are going to learn:

45、Secured borrowing 担保借款担保借款 Sale of receivables 应收款的出售应收款的出售Secured borrowing Secured borrowing: the transferor (borrower) borrowed money from transferee (lender), with the receivables serving as collateral for the loan. 担保借款：转让人以应收款为担保借款：转让人以应收款为抵押抵押 (collateral)向向出让人贷款。出让人贷款。 The receivables belong

46、 to the transferor or transferee?The receivables still belong to the transferor.Example P65 illustration 2-5 Transferor (borrower): Santa Teresa GlassTransferee (lender): Finance Bank Dr. cash 490,700 Finance charge expense 财务费用财务费用 9,300 Cr. Liability-financing arrangement 500,000 负债负债-融资合同融资合同Loan

47、: $500,000Finance fee 融资费用融资费用: $620,0001.5%=9,300Balance 余额余额: 500,000-9,300=490,700Notes payable/short-term borrowing 500,000Signing a noteWithout signing a noteExample P65 illustration 2-5 Santa collected $400,000 of the receivables in Dec.:Dr. cash 400,000 Cr. Accounts receivable 400,000Santa sh

48、ould use the $400,000 to repay the loan borrowing from Finance Bank.Dr. notes payable 400,000 Cr. Cash 400,000During December, one-month of interest=$500,00012%1/12=$5,000Dr. Interest expense 5,000l Cr. cash 5,000Exercise P87 2-15 Transferor (borrower): High Five SurfboardTransferee (lender): Equita

49、ble Finance Corporation Dr. cash 439,200 Finance charge expense 10,800 Cr. Notes payable 450,000Loan: $450,000Finance fee: $600,0001.8%=10,800Balance: 450,000-10,800=439,200Sale of receivables 应收款的出售应收款的出售 The transferor (seller) sells the receivables to transferee (buyer).Sale of receivablesSale wi

50、thout recourseSale with recourseThe receivables belong to transfereeCan not ask to paySale without recourse 无追索权的销售无追索权的销售 If the sale is made without recourse, the buyer cant ask the seller for more money if customers dont pay the receivables.ACustomer BARCreditor债权人债权人debtor债务人债务人CSells ARCreditor

51、债权人债权人Did not paySale without recoursetransferortransfereesellerbuyerSale without recourse Who takes the risk if customers dont pay the receivables? A or C? The transferee (buyer) takes the risk of uncollectibility when accounts receivable are sold without recourse. 当采用无追索权的方式销售应收账款时，买方应承当采用无追索权的方式销

52、售应收账款时，买方应承担发生坏账的风险。担发生坏账的风险。Sale without recourse If it is the sale without resource, the seller (transferor) will do three things:Removes accounts (or notes) receivable, and any allowance for bad debts associated with them 把应收账款（或应收票据）从账户中把应收账款（或应收票据）从账户中剔除剔除，以及，以及剔除与之相关的坏账准备剔除与之相关的坏账准备Recognizes

53、at fair value any assets acquired or liabilities assumed by seller in the transaction 把把从交易中获得资产或承担的负债以从交易中获得资产或承担的负债以公允价值公允价值确认确认1. Records the difference as a gain or loss 将差额确将差额确认为认为利得或者损失利得或者损失AR=$600,000Example Illustration 2-6 Seller (transferor): Santa Teresa Glass Buyer (transferee): Factor

54、 Bank AR=$600,000 Sale without recourseSFCash + beneficial interest$540,000Fair value - 4% fee$50,000-$24,000=$26,000sellerbuyerWill be paid now (cash)Will be paid in the future(receivable)Example Removes accounts (or notes) receivable, and any allowance for bad debts associated with themRecognizes

55、at fair value any assets acquired or liabilities assumed by seller in the transactionRecords the difference as a gain or lossSFAR=$600,000Cash + beneficial interest$540,000Fair value - 4% fee$50,000-$24,000=$26,000sellerbuyerWill be paid now (cash)Will be paid in the future(receivable) Example Dr. C

56、ash 540,000 Receivable from factor 26,000 (other receivable) Loss on sale of receivables 34,000 Cr. Accounts receivable 600,000Exercise P87 E2-16Can ask to paySale with recourse 有追索权的销售有追索权的销售 If the sale is made with recourse, the buyer can ask the seller for more money if customers dont pay the re

57、ceivables.ACustomer BARCreditor债权人债权人debtor债务人债务人CSells ARCreditor债权人债权人Did not paySale with recoursetransferortransfereesellerbuyerSale with recourse Who takes the risk if customers dont pay the receivables? A or C? The transferor (seller) retains the risk of uncollectibility when accounts receivab

58、le are sold with recourse. 当采用有追索权的方式销售应收账款时，坏账的风当采用有追索权的方式销售应收账款时，坏账的风险仍归卖方所有。险仍归卖方所有。Sale with recourse If it is the sale with resource, the seller (transferor) will do four things:(the same as “sale without recourse”)(the same as “sale without recourse”)(the same as “sale without recourse”)1. The

59、 seller should record the estimated fair value of its recourse obligation as a liability.卖方需要估卖方需要估计计追索义务追索义务的公允价值并将其确认为一项负债。的公允价值并将其确认为一项负债。 Example Illustration 2-7 Sale with recourse Estimated fair value of recourse obligation is $5,000.SFAR=$600,000Cash ($540,000)sellerbuyerReceivable ($50,000-$

60、24,000=$26,000)Recourse liability ($5,000)Assets Liability Example Dr. Cash 540,000 Receivable from factor 26,000 Loss on sale of receivables 39,000 Cr. Accounts receivable 600,000 recourse liability 追索负债追索负债 5,000 Example Illustration 2-7 If the buyer (Factor Bank) collects all of the receivables, Dr. recourse li