Accounts Receivale Apple

Apple INC.
Accounts Receivable and Allowance from Doubtful Accounts.
(Net Accounts Receivable)

Accounts Receivable is one of the very important account in the Balance Sheet, as it one of the most viewed accounts by investors when they atomic number 18 making enthronement decisions. Therefore, a ac telephoner should clearly identify and anticipate privation due to uncollectible and any receivable used as collateral. Receivables are claims held against customers and others for money, goods, or services. There are cardinal types of receivables, they are classified as current (short term) or non-current (long term). Receivables are get along classified as trade or nontrade receivables. Trade receivables are classified as current assets on a companys balance sheet as they can be readily converted into cash. Non-trade receivables arise from a variety of transactions such as advances to officers, employees, subsidiaries, deposits paid to cover potential return and losses, deposits paid as a guarantee of performance or payment, dividends, interest receivable etc.
There are devil types of security deposit rule; the direct write off method and the allowance method. In the direct write-off method a company determines that it cannot collect a specific receivable.



In contrast, the allowance method enters the expense on an estimated basis in the story occlusive in which the sales on account occur. The direct write-off method is theoretically deficient because it fails to match costs with revenues of the peak and is very inconsistent. Thus, the direct write-off method is not considered allow and therefore not considered GAAP. The Allowance from doubtful accounts is a valuation account (contra asset). It is a balance sheet account that reduces the accounts receivable that are expected to be earned in an accounting period.
The Allowance from doubtful accounts can be approached in two different ways. It may be either percentage of accounts receivable or a percentage of sales approach that a...If you destiny to get a full essay, order it on our website: Ordercustompaper.com



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