Title 1. Chapter 9 - Theory and Knowledge.docx ✅

K7.SBS PA PRINCIPLE OF ACCOUNTING Chapter 9: Accounting for Receivables Trần Vĩnh Luân
K7.SBS PA Trần Vĩnh Luân I. Types of Receivables There are three types of receivables: (1) accounts receivable, (2) notes receivable, and (3) other receivables 1. Accounts receivable: Amounts customers owe on account from the performance of company (30-60 days) 2. Notes receivable: A written promise for amounts to be received (usually + interest) (60-90 days or longer) 3. Other receivable: Nontrade receivables such as interest receivable, loans to company officers, advances to employees, and income taxes refundable II. How to recognize receivables of a company 1. Case 1: Company performs service on account Recording rule: debit AR, credit Service Revenue Tutor Extra Note: ● Bản chất là công ty mình cung cấp dịch vụ cho khách hàng nhưng khách hàng còn nợ tiền công ty mình ● Hiệu ứng: Ghi nhận doanh thu, khoản phải thu của khách hàng tăng lên ● Doanh thu dịch vụ (Service Revenues) tăng => ghi vào normal balance => Credit ● Khoản phải thu của khách hàng (AR) tăng => ghi vào normal balance => Debit