ountingChapter7中级会计学课后习题答案.doc

CHAPTER 7 CASH AND RECEIVABLES
Question 7-10
The e statement approach to estimating bad debts determines bad debt expense directly by relating uncollectible amounts to credit sales. The balance sheet approach to estimating future bad debts indirectly determines bad debt expense by estimating realizable value for accounts receivable that exist at the end of the period. In other words, the allowance for uncollectible accounts at the end of the period is estimated and then bad debt expense is determined by adjusting the allowance account to realizable value.

Question 7-14
. GAAP focuses on whether control of assets has shifted from the transferor to the transferee. In contrast, IFRS focuses on whether pany has transferred “substantially all of the risks and rewards of ownership,” as well as whether pany has transferred control. Under IFRS:
If pany transfers substantially all of the risks and rewards of ownership, the transfer is treated as a sale.
If pany retains substantially all of the risks and rewards of ownership, the transfer is treated as a secured borrowing.
If neither conditions 1 or 2 hold, pany accounts for the transaction as a sale if it has transferred control, and as a secured borrowing if it has retained control.
BRIEF EXERCISES
Brief Exercise 7-8
Bad debt expense = $1,500,000 x 2% = $30,000
(2) Allowance for uncollectible accounts:
Beginning balance $25,000
Add: Bad debt expense 30,000
Deduct: Write-offs (16,000)
Ending balance $39,000

Brief Exercise 7-9
(1) Allowance for uncollectible accounts:
Beginning balance $ 25,000
Deduct: Write-offs (16,000)
Required allowance (33,400)*
Bad debt expense $24,400
(2) Required allowance = $334,000** x 10% = $33,400*
Accounts receivable:
Beginning balance $ 300,000
Add: Credit sales 1,500,000
Deduct: Cash collections (1,450,000)
Write-offs (16,000)
Ending balance $ 334,000**
EXERCISES
Exercise 7-9
Requirement 1
To record the write-off of receivables.
Allowanc