Professional Documents
Culture Documents
FAR1
FAR1
1. AR = PLEDGE
2. Entry = - No entry would be necessary
3. Trade and other (current) = - It is sufficient that disclosure is made in a note to financial statement
4. Classification =
ASSIGNMENT
1. AR With recourse – if customer don’t pay, entitled to pay
AR Without recourse – no liability
Beg 600,000 5,300,000 Collection Notification – customer → bank
Charge Sales 6,000,000 35,000 Write off Nonnotification – customer → company → bank
40,000 Returns
25,000 Allowance Assigned A/R Set-up NP
End 120,000 A/R – assigned 3m Cash 2.5m
A/R 3m NP 2.5m
Collection
Cash 2m 750k
A/R – assigned 2m 750k