Acc/291 Week 1

How would you record the cash receipts? It is recorded as revenue by debiting accounts receivable and crediting design revenue (Needles & Powers, 2012, p. 142). Also accrual accounting is done by recognizing revenues when they are earned (Needles & Powers, 2012, p.

o In summary this analysis shows the percent of every dollar in sales that is

Accounts receivable are amounts owed by customers on account. They result from the sale of goods and services on credit. These receivables are generally expected to be collected within 30 to 60 days. They are typically the most significant type of claim held by a company. Accounts receivable and notes receivable resulting from sales are also known as trade receivables. Accounts receivable resulting from sales are referred to as trade receivables in Alcatel's financial statements.

Rapid cash collections are indicative of high turnover; however, loss of customers to rival firms and tight credit levels arise from extremely high accounts receivable turnover level, (Horngren, 2013, p. 805).The accounts receivable turnover for Harry Jones in 2014 was 7.93 times. This figure decreased to 5.63 times in 2015. Both figures are less than the industry average of 9 times. Low inventory turnover levels might be attributed to reduced accounts receivable turnover levels throughout both 2014 and 2015. Inventory levels can be increased in the future to achieve higher accounts receivable turnover, (Horngren, 2013, p. 805).

The total Accounts Receivable balance in the records of $4,752,257.70 was verified by setting a filter of

COMPONENT PERCENTAGES INCOME STATEMENT (each item is expressed as a percentage of net sales revenue)

Accounts receivable reflects a balance of how much money is owed to the clinic. A summary of accounts receivable can reflect any outstanding balances on a patient account and can be helpful information to the clinic, especially if a patient’s account is sent to a collection agency. Other money owed to the clinic in the form of rent, royalties, and interest should be tracked and documented in a separate area from accounts receivable. Accounts payable reflects the amount of money that is owed to others, such as overpayments due to patients and vendor invoices or statements. Business invoices or statements should be placed in a specific spot according to office protocol until each bill is paid and documented accordingly.

Reducing accounts receivables requires strategic financial planning. Finance managers and the department administrators role in this process is crucial. The finance manager would be assignment with generating reports; frequently, in efforts of reducing accounts receivable days, an aged trial balance statement is created. The aged trial balance report is a document that lists accounts in their respective order. The administrator would be able to create a plan that prioritizes accounts from oldest to newest; also, the administrator would formulate a system for medical billing staff to ensuring codes for services are correctly entered to avoid rejections and ensuring services are properly classified as charitable or uncollectible debts. The financial statements generated by the

The process of recording and posting the effects of business transaction is done in a double entry t-form. The total dollar amount of debits must equal the total dollar amount of credits, with debits to the left and account credit to the right. Broken down, Assets = Liabilities + Stakeholder Equity. “Since debits increase assets, expense, and dividend accounts, they normally have debit balances. Conversely, because credits increase liability, capital stock, retained earnings, and revenue accounts, they normally have credit balances.”( Edwards, J. D., Hermanson, R.H., & Maher, M. W. (2011). p.84)

The accounts receivable is on part of the revenue cycle within a healthcare organization. Accounts receivable is defined as the revenue that patients and third parties owe the organization for services that have been provided (Nowicki, 2015). Obtaining demographic information, insurance data, verifying insurance coverage, acquiring deductibles and copayments, receiving authorizations, recording charges, printing and submitting bills, following up with patients about payment, and collecting payment are some of the activities within the accounts receivable cycle (Nowicki, 2015). The revenue cycle utilizes a multidisciplinary system to decrease amounts within accounts receivable by managing the payment cycles (Nowicki, 2015). Some of the management

Accounts receivable turnover measures the average time it takes for a firm to collect on credit sales. Harley Davidson's accounts receivable turnover rate is 6.75 times for 2001 and 8.74 times for 2000. This accounts receivable turnover rate seems low and would indicate that Harley Davidson is able to turn their receivables into cash quickly.

Accounts receivable turnover is the second method by which a company’s trade receivables’ liquidity can be evaluated (Gibson, 2011). Žager et al. (2012) noted turnover ratios should be as high as possible as this indicates a firm’s ability to convert its assets more often. 3M’s accounts receivable turnover for years 2007 and 2008 is shown in Exhibit 2. In 2007, 3M turned its accounts receivable over 7.12 times and 7.70 times in 2008. This calculates into a turnover of its accounts receivable every 51.28 days in 2007 and 47.38 days in 2008. The increase in accounts receivable turnover times per year (decrease in number of days to turnover accounts receivables) from 2007 to 2008 is a positive trend for 3M. It suggests, along with the prior calculation, the management of receivables is likely to be improving in efficiency.

Accounts receivable (A/R) relates to the revenue owed for services provided. This could include something simple as a regular health check-up or something more serious as a surgery. When a patient

Receivables Turnover: This shows the degree of realization in accounts receivables. Company N has a lower turnover rate, a lower rate implies that receivables are being held longer and the less likely they are to be collected. Also there is an opportunity cost of tying up funds in receivables for a long period of time. Company M is 29 times higher than company N.

Accounts receivables are the financial aspect of a physician's office. According to the article, 8 Key Areas of Medical Accounts Receivable Management, accounts receivables are "revenues generated but not yet collected. The article further states that account receivables are also known as patient accounts. These must be looked at and worked on everyday. As a general rule, an office would like to keep their receivables under ninety days.