Assignment:
Deliverable Length: 3-4 paragraphs
Details: Your company's accounts payable clerk is asked to fill in for your accounts receivable clerk. Many things look unfamiliar to her, and she needs some explanations. You start by saying, "Accounts receivable is claims from monies due to the company." Continue your explanation with the following:
• Explain
o the classification of receivables.
o how companies handle uncollectible accounts.
o revenue recognition when the right of return exists.
• Visit the SEC's Web site (www.sec.gov), and then do the following:
o Review a sample of financial statements submitted by an SEC registrant.
o Include the URL in your post.
• After reviewing the notes to the financial statements, list the types of information you found about the following:
o The type of accounts receivable the registrant had
o The classification
o How discounts are handled (if given)
o How the company treats uncollectible accounts
IMPORTANT NOTE
• When you talk about discounts make sure you touch on the gross and net methods
• In recording uncollectible amounts you may want to address the direct method and the allowance method
• For the right of return revenue recognition issue consider the conditions under which FASB states that a company should recognize revenue and the three alternatives to recording these transactions when there is a high rate of return.