Accounts receivable

Use case diagram for the accounts receivable The diagram represents the activities performed during the maintenance of old and new accounts. It is through this process that new accounts are created, overdue ones identified, and others discarded. The process identified in the diagram also helps in identifying the amount of money that the company is set to receive from its customers from time to time (Ibrahim et al., 2011). This process is crucial since it ensures that the company does not run on debt and that all products and services are paid for. The accounts receivable department also ensures that overdue accounts are closely monitored for thirty to sixty days. It also ensures that the company is cautious when granting credit to customers.…

According to the principles of accounting course, accounts receivable occurs when a customer purchases goods or services and promises to pay for them in the future. This helps consumers receive goods when they may not have the funds to purchase them, creating an account receivable, or when they cannot afford the whole amount upfront and want to make payments they create a note receivable, which usually accrues interest. When it comes to the business side, granting credit helps increase sales,…

In any organization, it is important to hire employees who posses the necessary KSAO’s to complete their duties and perform their jobs successfully. In the case of the Accounts Receivable job at Atlas, there are several components of knowledge, skills, and abilities that will facilitate successful performance on this job. To be successful in the Accounts Receivable job at Atlas, it is necessary to have knowledge of financial accounting, and knowledge of what Atlas’ mission and goals as a…

Accounts receivable analysis requires many different points of data in order to be sufficient. Required data includes payor information, patient information, billing information, registration information, and date limitations. Analysis must be performed based on the financial class of each payor, where financial classes vary by organization. The financial class system categorizes payors into contract generalization terms. Financial class 1 or 2 is considered Medicare services, where financial…

11-39 a. Control C. If the amount recorded to the customer account is incorrect, whether because the amounts were recorded to the wrong customer account in error or because customers' checks were stolen, mailing a monthly statement to customers with outstanding balances will help control this error or fraud because the customer is likely to let the creditor know that the amount they are reported as owing is incorrect, especially if the statement says they owe more than what they actually owe.…

components that are; inventories, account receivables and cash and cash equivalent. On the other hand, current liabilities include account payables. Previous studies have revealed that working capital management may have an impact on a firm’s performance. According to Shin and Soenen (1998), Lazaridis and Tryfonidis (2006), Reheman and Nasr (2007) and many other researchers studied working capital management with that of cash conversion cycle. They stated that the more investment is in working…

Because of this the net cash provided to them from operating activities is lower than it could be if they let their inventory shrink a little. For example, let’s say that GAP’s net income for the year is around $200,000, and they have a depreciation expense of $10,000, a decrease in accounts receivable of $3,000, an increase of inventory of $30,000, and an increase in accounts payable of $15,000. This would leave them with net cash provided by operating activities of $198,000. Because GAP has…

subtract $10,000 from net income on the statement of cash flows to make the adjustment. Next, an increase or decrease in current assets other than cash must be entered for adjustment. A $5,000 increase in accounts receivable must be subtracted and a $5,000 decrease in inventory must be added to net income on the statement of cash flows to make the adjustment. Lastly, any increase or decrease in current liabilities must be entered for adjustment. A $2,000 decrease on a short-term note payable…

effective and efficient policy. Aroon is also wanting to expand his business Thai Flavours by selling to new customers on credit but is wary whether they will all pay off the credit. Aroon keeps an accounts receivable subsidiary ledger to process and track all of the purchases that are made using credit, also to keep track of the customers purchasing on credit to try to avoid bad debts. The accounts receivable subsidiary ledger is the ledger where account information for individual debtors is…

CHAPTER 7 Cash and Receivables ASSIGNMENT CLASSIFICATION TABLE Topics Questions Brief Exercises Exercises Problems 1. Accounting for cash. 1, 2, 3, 4, 21 1 1, 2 1 2. Accounting for accounts receivable, bad debts, other allowances. 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 2, 3, 4, 5 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 18, 19 2, 3, 4, 5, 6, 10, 11 1, 2, 3, 4, 5, 10, 11 3. Accounting for notes receivable. 13, 14 6, 7, 8 18, 19…