Current Assets: Part II

This book is the fourth of fifteen books which introduces the basic principles of accounting, focusing primarily on liquid assets. Accounts receivable, costs and benefits of selling on credit, considerations for uncollectible receivables, notes receivable and interest are also discussed. In addition, the fundamentals of inventory costing methods and ratio analysis are introduced. Key Inventory methodologies are introduced, FIFO, Average Cost, Lower-of-Cost-or-Market.

Part 1: Accounts Receivable

1. The Costs and Benefits of Selling on Credit
1.1 Credit Sales
1.2 Credit Cards

2. Accounting for Uncollectible Receivables
2.1 Direct Write-off Method

3. Alternative Approaches for Uncollectibles
3.1 Determining the Allowance Account
3.2 Writing off Uncollectible Accounts
3.3 Collection of an Account Previously Written off
3.4 Matching Achieved
3.5 Monitoring and Managing Accounts Receivable

4. Notes Receivable
4.1 Accounting for Notes Receivable
4.2 A Dishonoured Note
4.3 Notes and Adjusting Entries

Part 2: Inventory

5. The Components of Inventory
5.1 Determining Which Goods to Include in Inventory

6. Inventory Costing Methods
6.1 Determining the Cost of Ending Inventory
6.2 Costing Methods
6.3 First-in, First-out Calculations
6.4 Last-in, First-out Calculations
6.5 Weighted average Calculations
6.6 Preliminary Recap and Comparison
6.7 Detailed Illustrations
6.8 FiFO
6.9 LIFO
6.10 Weighted Average
6.11 Comparing Inventory Methods
6.12 Specific Identification

7. Perpetual Inventory Systems
7.1 Perpetual FIFO
7.2 Journal Entries
7.3 Perpetual LIFO
7.4 Moving Average

8. Lower of Cost or Market Adjustments
8.1 Measuring Market Value
8.2 Application of the Lower-of-Cost-or-Market Rule

9. Inventory Estimation Techniques
9.1 Gross Profit Method
9.2 Retail Method

10. Inventory Management

11. Inventory Errors

Larry M. Walther, Ph.D., CPA, CMA, is the Ernst & Young Professor and Head of the School of Accountancy at Utah State University. Dr. Walther has authored numerous accounting textbooks and articles, and has served as director and/or consultant to a number to a number of public and nonpublic companies. Dr. Walther obtained his Ph.D. in accounting from Oklahoma State University and has public accounting experience with Ernst & Young. He currently serves as the accounting accreditation committee of the AACSB and is past president for the federation of schools of accountancy.

Dr. Chris Skousen obtained his Ph.D. at Oklahoma State University. He earned MBA and BA degrees from Utah State University. Dr. Skousen gained public accounting auditing experience with KPMG in their Portland, Oregon office, and as an intern in their in Düsseldorf, Germany office, and at Squire & Co. Dr. Skousen has taught accounting at Utah State University, The University of Texas at Arlington, Oklahoma State University, and Brigham Young University-Idaho. He has published in Accounting Horizons, Behavior Research in Accounting, Accounting and the Public Interest, and other journals.