Common Knowledge Of Accounts Receivable

　　 Accounts receivable account structure

Debit side:

Borrow 1, purchase goods, materials and other accounts charged by purchasing units.

Borrow 2, replace the packing expenses, miscellaneous expenses;

Borrow 3, have been washed down Bad debt preparation And the recovery of the bad debt loss;

Borrowing 4, discounted acceptance bills, owing to the inability of the accepting company to pay the bill;

Borrow 5, advance the settlement of the project price;

Borrow 6, others Advance payment Settlement.

Debit balance: outstanding accounts

The lender:

Loan 1, the purchase of goods, materials and other accounts;

2, collect the packing fees and miscellaneous fees of the replacement mat.

Loan 3, refunded accounts receivable;

4, the accounts receivable of enterprises should be converted to commercial acceptance bills;

5, receive a commercial draft;

6, the loss of bad debts that have been sold back and recovered.

Credit balance: advance payments to related units

　 Valuation of accounts receivable

Accounts receivable are usually accounted for according to actual amounts. Factors such as commercial discounts and cash discounts should also be considered in pricing.

One Trade discount

Accounts receivable commercial discount refers to the discount offered by the company according to market demand or different customers, and the commercial discount is one of the most commonly used promotional methods. [2] adopts the promotion strategy with more sales and lower prices. That is what we usually call "small profits but quick turnover". The characteristic of business discount is that discount occurs at the same time when sales are realized. It is a means to determine the actual selling price when a business discount exists. Sales and discounts should be separately stated on the same invoice. Neither side of the buyer and the buyer needs to separate accounts on their respective accounts. Because of this, commercial discounts have little effect on determining the amount of accounts receivable, and the company only needs to deduct commercial discount directly from the commodity price. Under normal circumstances, as long as there is a commercial discount, the accounts receivable account is determined according to the actual price, that is, the amount of the account is determined according to the actual price minus the commercial discount after the commodity price is deducted.

2. cash discount

Cash discount refers to the deduction of debt provided to the debtor by the creditor in order to encourage the debtor to pay within the specified time limit. [2] for sales enterprises, cash discount has two positive significance: shorten the collection time, reduce the loss of bad debts. Negative effect is to reduce cash flow. As long as there is a credit sale, there may be a cash discount for goods sales and services. In order to speed up the flow of funds and reduce the cost of capital use, the company will actively contact the debtor and strive to reach an unanimous agreement with the debtor to encourage customers to repay loans in advance. The purpose is to prompt the payer to repay the accounts at an early date. Therefore, the essence of the payoff is the reduction of receivables, which is a preferential policy of debt repayment provided by the creditor to the debtor. The debtor can enjoy different discounts in different periods. In order to obtain such a reduction in accounts receivable, the debtor usually pays the loan within the preferential time limit. Cash discount is usually expressed as "discount / payment period" [2], such as "2/10" "1.5/20", which means that the buyer can pay 2% discount on the price within the 1O days, and the buyer can pay within 1.5% days for the 20 days. In the case of cash discount, the amount of accounts receivable should be divided into two ways: one is the total price method, the other is the full price method, the other is the net price method. The accounting method of the total price method is that when the sales business occurs, it will be accounted for by the amount of the invoice before the discount is deducted, and it will be confirmed when the discount actually occurs, that is, the cash discount can only be determined only when the customer pays the goods during the discount period. If the customer fails to pay the goods within the discount period, it will not be determined as a cash discount. In the full method, the seller generally gives the customer's cash discount to be included in the financial cost. Net price method, also known as net method, is the accounting method of net price method. When the sales business occurs, the net amount is deducted after deducting the cash discount. If the customer does not enjoy the discount, it will be used to reduce the financial cost. That is to say, the value of accounts receivable should be determined. This method is regarded as a normal phenomenon for customers to get cash discounts. It is considered that customers can generally pay before the maturity date of accounts receivable, and the amount of more income due to customers' exceeding the discount period is regarded as the proceeds from providing credit.

　　 Determination of bad debt losses

When a company determines the loss of bad debts, it should follow the objectives of the financial report and the basic principles of accounting, specifically analyze the characteristics of the accounts receivable, the size of the amount, the credit period, the reputation of the debtor and the business situation at that time. Generally speaking, the company's accounts receivable meet one of the following conditions: it should be recognized as the loss of bad debts: (1) the debtor's death is still unrecoverable after the payment of his estate. 2. If the debtor is bankrupt, it can not be recovered after liquidation of his bankrupt property. (3) the debtor has not fulfilled his debt paying obligations for a long time, and there is enough evidence to show that the possibility of failure to recover or withdraw is minimal. [3] company should check the accounts receivable at the end of the current period and make an analysis according to the actual situation of accounts receivable. The company should make bad debt losses for accounts receivable which may generate bad debts or bad debts. At the same time, the normal accounts receivable should also be strengthened to prevent new bad debts or bad debts. When determining the proportion of bad debt preparation, the company should make reasonable estimation based on the previous experience, the actual situation of the debtor unit and cash flow and other related information. It should be noted that accounts receivable that have been identified as bad debts do not mean that the company has waiver of recourse, and should be refunded in time. In short, if enterprises want to develop and expand sales, they will inevitably have credit sales, and credit sale is one of the fundamental ways to expand sales. Therefore, enterprise accounts receivable recovery risk and the resulting financial risks always coexist. As long as we adopt appropriate credit policy and effective management method, we can reduce the risk of accounts receivable and maximize the income.