Percentage of receivables method for estimating uncollectible accounts aging method the older the account, less likely it is to be collected journal entry to record uncollectible account bad debt expense

percentage of receivables method for estimating uncollectible accounts

aging method

the older the account, less likely it is to be collected

journal entry to record uncollectible account

bad debt expense
allowance for uncollectible
accounts

what happens to assets, stockholders’ equity, and revenues when there is a collection of an account within the discount period

assets decrease
SHE decrease
revenues decrease

what happens to assets and stockholders equity when there is a recording estimate of an uncollectible account

assets decrease
SHE decrease

what happens when you provide services on account

assets increase
liabilities remain constant
SHE increase
revenues increase
expenses remain constant

how to calculate ending inventory

beginning inventory + purchases – COGS

how to calculate operating income

gross profit – selling/administrative expenses

how to calculate GP when calculating inventory

revenues – COGS

weighted average ratio calculation

total cost / total # of units

FOB shipping point

when A sells to B, B obtains title when goods are in transit

patent

exclusive right to manufacture a product, 20 years

exclusive right of protection, life of creator + 70 years

trademark

word, slogan, symbol that identifies company, 10 years

how to find fair value of net assets

FV assets – FV liabilities