Receivables

→ klaim terhadap sejumlah uang yang diharapkan akan diperoleh dimasa yang akan datang. Piutang timbul dikarenakan terdapat penjualan barang atau jasa secara kredit. Piutang juga dapat berupa pemberian kredit kepada debitur sehingga memunculkan Notes Receivables.

1.     Account receivables

→ perjanjian lisan dari pelanggan untuk melunasi hutangnya. Biasanya jangka waktunya 30-60 hari.

2.     Notes receivables

→ janji tertulis bahwa pembeli akan membayar pada tanggal spesifik. Piutang ini memiliki tingkat bunga.

3.     Other receivables

Piutang yang tidak terkait dengan perdagangan, contohnya interest, loans to officers, advances to employees, dividends and interest receivable, and income taxes refundable.

 

Recognition of Account Receivables

 






Valuation of Accounts Receivables

Valuing accounts receivables:

ü  Current assets

ü  Valuation (Net Realizable Value) → harus mengakui piutang tak tertagih.

Uncollectible Accounts Receivables:

ü  Sales on account raise possibility of accounts not being collected.

ü  Seller records losses that result from extending credit as Bad Debt Expense.

 

Accounting for Uncollectible Accounts.

1.     Direct Write-off Method → tidak diperkenankan digunakan.

Ø  No matching of expenses with revenues. (matching cost: beban harus diakui pada periode yang sama dengan pengakuan pendapatan).

Ø  Receivable not stated at net realizable value.

Ø  Not acceptable for finansial reporting purposes.

 

Illustration:

      Assume that Moskov Co. writes off Alister’s NT $1600 balance as uncollectible on December 12. Moskov’s entry is as follows:

December 12

Bad Debt Expense

1600

 

 

  Account Receivables

 

1600

 

2.     Allowance Method

Ø  Better matching of expense with revenue.

Ø  Receivable stated at cash(net) realizable value.

Ø  Required for finansial reporting purposes.

Ø  Debit Bad Debt Expense and kredit Allowance for Doubtful Accounts(kontra akun).

 

 

Illustration:

      Assume that Moskov Co.in 2019, its first year of operations, has kredit sales of $1.800.000. Of this amount, $150.000 remains uncollected at December 31. The credit manager estimates that $10.000 of these sales will be uncollectible. The adjsuting entry to record the estimated uncollectibles (assuming a zero balance in the allowance account) is: → ketika mencadangkan.

March 1

Bad Debt Expense

10.000

 

 

  Allowance for Doubtful Accounts

 

10.000

 

Mencatat piutang yang tidak tertagih:

The finansial vice president of Moskov authorizes a write-off of the $1.000 balance owed by Randall plc on March 1.

March 1

Allowance for Doubtful Accounts

1.000

 

 

    Accounts Receivables

 

1.000

 

Recovery of an Uncollectible Accounts  

Assume that on July 1, Randall plc pays the $1.000 amount that Moskov had written off on March 1.

July 1

Accounts Receivables

1.000

 

 

    Allowance for Doubtful Accounts

 

1.000

July 1

Cash

1.000

 

 

    Accounts Receivables

 

1.000

 

Estimating the Allowance

1.     Percentage of sales → report estimate of receivables based on sales.

Illustration 1:

            Hampson Furniture has credit sales of 1.200.000 in 2020. The credit manager estimates that 1% of these sales will be uncollectible.

Dec. 31

Bad Debt Expense

12.000

 

 

  Allowance for Doubtful Accounts

 

12.000

Illustration 2:

            Hampson Furniture has sales of 1.200.000 in 2020, of which $800.000 is credit sales. $The credit manager estimates that 1% of these sales will be uncollectible.

Dec. 31

Bad Debt Expense

8.000

 

 

  Allowance for Doubtful Accounts

 

8.000

 

2.     Percentage of receivables → report estimate of receivables at cash realizable value.

ü  One rate:

Illustration 1:

            Hampson Furniture has sales of 1.200.000 in 2021, of which $200.000 is credit sales. $The credit manager estimates that 6% of these sales will be uncollectible. Balance of Allowance for Doubtful Accounts is 8.000 on credit.

 

 

Dec. 31

Bad Debt Expense

4.000

 

 

  Allowance for Doubtful Accounts

 

4 .000

Illustration 2:

            Hampson Furniture has sales of 1.200.000 in 2021, of which $200.000 is credit sales. $The credit manager estimates that 6% of these sales will be uncollectible. Balance of Allowance for Doubtful Accounts is 8.000 on debit.

Dec. 31

Bad Debt Expense

20.000

 

 

  Allowance for Doubtful Accounts

 

20 .000

ü  Aging Schedule




If allowance account had a zero:

Dec. 31

Bad Debt Expense

26.610

 

 

  Allowance for Doubtful Accounts

 

26.610

If allowance account had a credit balance $800:

Dec. 31

Bad Debt Expense

25.810

 

 

  Allowance for Doubtful Accounts

 

25.810

If allowance account had a debit balance $800:

Dec. 31

Bad Debt Expense

27.410

 

 

  Allowance for Doubtful Accounts

 

27.410