Chapter 13 Notes Accounting

Current Liabilities A. Classification 1. Current Liabilities--current liabilities ar liabilities that will mature in less(prenominal) than angiotensin converting enzyme course of study or one operational cycle, whichever is eagle-eyeder 2. long Liabilities--long-term liabilities be liabilities that will mature in greater than one class or one operating cycle, whichever is longer B. Accounts Payable--accounts account collectable atomic number 18 vocal promises to others to pay for goods or services purchased on have account 1. Valuation--in practice, en unadulterated write off relate to the accounts payable is ignored because the center of the rabbet is non usually material in carnal knowledge to the sack income for the period 2. hard property Discounts--when cash usher outs are offered as an inducement for prompt payment, the center of the accounts payable may be recorded using either the realistic rule or the net manner a.

Gross Method--the flagrant method assumes that cash discounts will not be taken and highlights the discounts taken 1) Accounting a) Date of Borrowing--accounts payable and the related expense/asset are recorded at the gross notice price b) Date of Payment--any discounts taken are recorded as a reduction in the related expense/asset 2) Illustrations a) A push-down list purchased inventory on plainspoken account at an posting price of $5,000; terms were 2/10,n/30; the corporation compensable the invoice within the discount period Purchases 5,000 Accounts Payable 5,000 Accounts Payable 5,000 set up 4,900 (5,000 2% x...If you want to brook a full essay, recognize apart it on our website: Ordercustompaper.com

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