Accounting for Receivables: Receivables are defined as the amounts that are due to a firm by its customers and other parties. Receivables include all those assets that arise due to the primary operations of a firm and those representing cash that is to be collected from all external parties who owe money to the firm. Receivables are broadly categorized into trade-receivables and non-trade receivables. Trade receivables refer to those receivables that occur due to the sale of goods and services in the normal course of business. Non-trade receivables refer to the amounts that occur due to third parties from transactions outside the primary course of business. To determine: The difference between an account receivable and a note receivable.

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Answer 1

Question

Chapter 9, Problem 1Q

To determine

Accounting for Receivables:

Receivables are defined as the amounts that are due to a firm by its customers and other parties. Receivables include all those assets that arise due to the primary operations of a firm and those representing cash that is to be collected from all external parties who owe money to the firm.

Receivables are broadly categorized into trade-receivables and non-trade receivables. Trade receivables refer to those receivables that occur due to the sale of goods and services in the normal course of business. Non-trade receivables refer to the amounts that occur due to third parties from transactions outside the primary course of business.

To determine: The difference between an account receivable and a note receivable.

Expert Solution & Answer

Explanation of Solution

The difference between an account receivable and a note receivable are explained as below.

Accounts receivable: Accounts receivable can be defined as the amounts which customers owe to an organization. Accounts receivable are the results of sale of goods or services. Usually accounts receivable are collected within a time period of 30 to 60 days.
Notes receivable: Notes receivable can be defined as a written promissory note. It can also be referred to as a note required for collection of interest and is collected within a time period of 60 to 90 days. Both accounts receivables and note receivables are the results of sales transactions.

Conclusion

Hence, the difference between an accounts receivable and a notes receivable are explained as above.

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Need help with this general accounting question

Cullen Beatty plans to start a consulting business-Cullen Consulting Services. In preparation to do this, on April 1, 20X1, he invested $56,000 in cash and $23,000 in equipment, and opened an account at Office Plus by purchasing $1,750 in office supplies which is due by the end of the month. He then signed a one-year lease agreement on an office building for $8,400, paying the full amount in advance. Prepare a Balance Sheet for Cullen Consulting Services as of April 1, 20X1, before he conducts any services. Cash Equipment Prepaid rent CULLEN CONSULTING SERVICES Balance Sheet April 1, 20X1 Assets Liabilities $ 47,600 Accounts payable 23,000 8,400 Owner's Equity $ 1,750 Cullen Beatty, Capital 77,250 Total Assets $ 79,000 Total Liabilities and Owner's Equity $ 79,000

The December 31, 2021, balance sheet of Chen, Incorporated, showed long-term debt of $1,420,000, $144,000 in the common stock account, and $2,690,000 in the additional paid-in surplus account. The December 31, 2022, balance sheet showed long-term debt of $1,620,000, $154,000 in the common stock account and $2,990,000 in the additional paid-in surplus account. The 2022 income statement showed an interest expense of $96,000 and the company paid out $149,000 in cash dividends during 2022. The firm’s net capital spending for 2022 was $1,000,000, and the firm reduced its net working capital investment by $129,000. What was the firm's 2022 operating cash flow, or OCF?

Answer 2

Question

Chapter 9, Problem 1Q

To determine

Accounting for Receivables:

Receivables are defined as the amounts that are due to a firm by its customers and other parties. Receivables include all those assets that arise due to the primary operations of a firm and those representing cash that is to be collected from all external parties who owe money to the firm.

Receivables are broadly categorized into trade-receivables and non-trade receivables. Trade receivables refer to those receivables that occur due to the sale of goods and services in the normal course of business. Non-trade receivables refer to the amounts that occur due to third parties from transactions outside the primary course of business.

To determine: The difference between an account receivable and a note receivable.

Expert Solution & Answer

Explanation of Solution

The difference between an account receivable and a note receivable are explained as below.

Accounts receivable: Accounts receivable can be defined as the amounts which customers owe to an organization. Accounts receivable are the results of sale of goods or services. Usually accounts receivable are collected within a time period of 30 to 60 days.
Notes receivable: Notes receivable can be defined as a written promissory note. It can also be referred to as a note required for collection of interest and is collected within a time period of 60 to 90 days. Both accounts receivables and note receivables are the results of sales transactions.

Conclusion

Hence, the difference between an accounts receivable and a notes receivable are explained as above.

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Answer 3

Question

Chapter 9, Problem 1Q

To determine

Accounting for Receivables:

Receivables are defined as the amounts that are due to a firm by its customers and other parties. Receivables include all those assets that arise due to the primary operations of a firm and those representing cash that is to be collected from all external parties who owe money to the firm.

Receivables are broadly categorized into trade-receivables and non-trade receivables. Trade receivables refer to those receivables that occur due to the sale of goods and services in the normal course of business. Non-trade receivables refer to the amounts that occur due to third parties from transactions outside the primary course of business.

To determine: The difference between an account receivable and a note receivable.

Expert Solution & Answer

Explanation of Solution

The difference between an account receivable and a note receivable are explained as below.

Accounts receivable: Accounts receivable can be defined as the amounts which customers owe to an organization. Accounts receivable are the results of sale of goods or services. Usually accounts receivable are collected within a time period of 30 to 60 days.
Notes receivable: Notes receivable can be defined as a written promissory note. It can also be referred to as a note required for collection of interest and is collected within a time period of 60 to 90 days. Both accounts receivables and note receivables are the results of sales transactions.

Conclusion

Hence, the difference between an accounts receivable and a notes receivable are explained as above.

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Answer 4

Question

Chapter 9, Problem 1Q

To determine

Accounting for Receivables:

Receivables are defined as the amounts that are due to a firm by its customers and other parties. Receivables include all those assets that arise due to the primary operations of a firm and those representing cash that is to be collected from all external parties who owe money to the firm.

Receivables are broadly categorized into trade-receivables and non-trade receivables. Trade receivables refer to those receivables that occur due to the sale of goods and services in the normal course of business. Non-trade receivables refer to the amounts that occur due to third parties from transactions outside the primary course of business.

To determine: The difference between an account receivable and a note receivable.

Expert Solution & Answer

Explanation of Solution

The difference between an account receivable and a note receivable are explained as below.

Accounts receivable: Accounts receivable can be defined as the amounts which customers owe to an organization. Accounts receivable are the results of sale of goods or services. Usually accounts receivable are collected within a time period of 30 to 60 days.
Notes receivable: Notes receivable can be defined as a written promissory note. It can also be referred to as a note required for collection of interest and is collected within a time period of 60 to 90 days. Both accounts receivables and note receivables are the results of sales transactions.

Conclusion

Hence, the difference between an accounts receivable and a notes receivable are explained as above.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem 1Q

To determine

Accounting for Receivables:

Receivables are defined as the amounts that are due to a firm by its customers and other parties. Receivables include all those assets that arise due to the primary operations of a firm and those representing cash that is to be collected from all external parties who owe money to the firm.

Receivables are broadly categorized into trade-receivables and non-trade receivables. Trade receivables refer to those receivables that occur due to the sale of goods and services in the normal course of business. Non-trade receivables refer to the amounts that occur due to third parties from transactions outside the primary course of business.

To determine: The difference between an account receivable and a note receivable.

Expert Solution & Answer

Explanation of Solution

The difference between an account receivable and a note receivable are explained as below.

Accounts receivable: Accounts receivable can be defined as the amounts which customers owe to an organization. Accounts receivable are the results of sale of goods or services. Usually accounts receivable are collected within a time period of 30 to 60 days.
Notes receivable: Notes receivable can be defined as a written promissory note. It can also be referred to as a note required for collection of interest and is collected within a time period of 60 to 90 days. Both accounts receivables and note receivables are the results of sales transactions.

Conclusion

Hence, the difference between an accounts receivable and a notes receivable are explained as above.

Answer 6

Chapter 9, Problem 1Q

To determine

Accounting for Receivables:

Receivables are defined as the amounts that are due to a firm by its customers and other parties. Receivables include all those assets that arise due to the primary operations of a firm and those representing cash that is to be collected from all external parties who owe money to the firm.

Receivables are broadly categorized into trade-receivables and non-trade receivables. Trade receivables refer to those receivables that occur due to the sale of goods and services in the normal course of business. Non-trade receivables refer to the amounts that occur due to third parties from transactions outside the primary course of business.

To determine: The difference between an account receivable and a note receivable.

Expert Solution & Answer

Explanation of Solution

The difference between an account receivable and a note receivable are explained as below.

Accounts receivable: Accounts receivable can be defined as the amounts which customers owe to an organization. Accounts receivable are the results of sale of goods or services. Usually accounts receivable are collected within a time period of 30 to 60 days.
Notes receivable: Notes receivable can be defined as a written promissory note. It can also be referred to as a note required for collection of interest and is collected within a time period of 60 to 90 days. Both accounts receivables and note receivables are the results of sales transactions.

Conclusion

Hence, the difference between an accounts receivable and a notes receivable are explained as above.

Answer 7

Chapter 9, Problem 1Q

To determine

Accounting for Receivables:

Receivables are defined as the amounts that are due to a firm by its customers and other parties. Receivables include all those assets that arise due to the primary operations of a firm and those representing cash that is to be collected from all external parties who owe money to the firm.

Receivables are broadly categorized into trade-receivables and non-trade receivables. Trade receivables refer to those receivables that occur due to the sale of goods and services in the normal course of business. Non-trade receivables refer to the amounts that occur due to third parties from transactions outside the primary course of business.

To determine: The difference between an account receivable and a note receivable.

Answer 8

Expert Solution & Answer

Explanation of Solution

The difference between an account receivable and a note receivable are explained as below.

Accounts receivable: Accounts receivable can be defined as the amounts which customers owe to an organization. Accounts receivable are the results of sale of goods or services. Usually accounts receivable are collected within a time period of 30 to 60 days.
Notes receivable: Notes receivable can be defined as a written promissory note. It can also be referred to as a note required for collection of interest and is collected within a time period of 60 to 90 days. Both accounts receivables and note receivables are the results of sales transactions.