Chapter 9, Problem 9.3E

(a)

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 prepare: The adjusting entry at December 31.

(b)

To determine

To prepare: The adjusting entry at December 31.

(c)

To determine

To prepare: The adjusting entry at December 31.