[jeff]

Welcome to the Q1 2017 CPA Exam Study Group for FAR. 🙂

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[mtaylo24]

Thanks @Re2pect. @aatoural, glad you liked them, here are a few more

SU 6: Receivables

6.1 – A/R Fundamentals

Item is sold
Dr. A/R
Cr. Sales

Payment is received within the discount period
Dr. Cash
Dr. Sales Discounts
Cr. A/R

Payment is received after the discount period
Dr. Cash
Cr. A/R
Dr. Cash
Cr. Sales Discounts forfeited

Sales Returns
Dr. Sales returns (contra account)
Cr. Allowance for sales returns (Contra account)

6.2 – A/R Measurement

Bad debt expense
Dr. Bad Debt Expense
Cr. Allowance for uncollectible accounts

Write-offs charged to allowance
Dr. Allowance for uncollectible accounts
Cr. Accounts receivables

Sales on credit
Dr. Accounts receivables
Cr. Sales

Collections on credit sales
Dr. Cash
Cr. Accounts Receivables

Bad debt Expense Recognized
Dr. BD Expense
Cr. Allowance for uncollectable accounts

Account previously written-off collected:
Dr. A/R
Cr. Allowance for uncollectible accounts
Dr. Cash
Cr. A/R

Accounts considered uncollectible written off
Dr. Allowance for uncollectible accounts
Cr. A/R

6.3 – Transfers of receivables and other financial assets

Dr. Cash
Dr. Due from factor
Dr. Loss on sale of receivables
Dr. Prepaid interest/interest expense
Cr. Accounts Receivables

Credit card sales

Initial Sale
Dr. Cash
Dr. Service charge expense
Cr. Receivables

Direct deposit of cc receipt
Dr. Cash
Dr. Service charge expense
Cr. Sales

Secured borrowings
Dr. A/R assigned
Cr. A/R

N/P
Dr. Cash
Cr. N/P

Transfers of Assets
Dr. Cash
Dr. Loss on transfer
Cr. Notes Receivable

Transfer of a participating interest
Dr. Cash
Dr. Loss on transfer
Cr. Notes Receivable

6.4 Notes Receivable – Recognition

Initial Recognition
Dr. Notes Receivable
Cr. Cash
Cr. Discount on Note

Amortize Interest
Dr. Discount on Note
Cr. Interest Revenue

Notes Receivables – Discounting

Gain
Dr. Cash
Cr. Gain on sale of N/R
Cr. N/R
Cr. Interest receivable

Loss
Dr. Cash
Dr. Loss on sale of Notes receivables
Cr. Note receivable
Cr. Interest receivable

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[aatoural]

Guys any mnemonics or other trick for impairments. i keep forgetting the formulas

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[Iceman6]

Weaker on MCQ, stronger on SIMs. Kinda how I felt leaving the test. Just underperformed way lower on a couple of the topics than I expected

[Anonymous]

Impairment Losses

@Aatoural, can you help me with my question for NFPO JEs from the back page (Page#80) of this thread?

[mtaylo24]

Impairments

IFRS

One-step test. Carrying amount is compared with recoverable amount. Loss is = to excess of the carrying amount over the recoverable amount (greater of FV – cost to sale or value in use).

Value in use = PV of its expected cash flows

GAAP

two-step test. step 1 – the carrying amount is not recoverable if it exceeds the sum of the undiscounted future cash flows expected from the use and disposition of asset.

step 2 – If carrying amount is not recoverable loss may be recognized (carrying amt over its fair value)

Reversals – permitted under IFRS, not allowed under GAAP

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[aatoural]

Thanks guys!

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[mckan514w]

Thanks guys- I'm done… I don't feel great about it- MCQ's were really out of left field and wordy and long as F_K. They hit me over the head with one topic in particular that isn't one of my stronger ones and really isn't covered too extensively in the study materials… but man did they test it every which way they could test it. SIMS were just really random- three were so simple that I can't help but think I missed something…pretty sure I found the research one and then three were just straight from hell…. all in all like I said I don't feel good- and am already contemplating April or Sept sit or just moving on my merry way…I really did have a good life and career before I decided to become a CPA— I am just beat up– now if you will excuse me I have a 24 (well now 23) pack of beer cooling in the fridge and its 70 with chance of snow tomorrow so I am going out to enjoy my beer and my two weeks off from this hell….

Oh as for time I left 1:45 for SIMs and left with about 10 mins on the clock which actually kind of made me mad because I feel like I rushed through my third testlett to allow for enough time.
Good luck to everyone testing this afternoon and tomorrow!!!

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[Mscfisher]

@mckan all we need is a 75 I believe you did well and you will pass so the countdown begins.

[aatoural]

@mckan I hope for the best to you on the 21st.Like @mscfisher says. All we need is a 75.

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[Anonymous]

Sad, this thread has been put down here.
I haven't even taken FAR yet until tomorrow:(

[007]

They say 18-25% is Govt and NFP, but my test today was more like 40-50%. MCQ besides that was just all over the place and not what I was expecting. I knew a few of the sims, but the other ones were God awful including my research question. I won't be surprised if I failed, but with this test who knows until you see your score.

[A]

I sit at noon tomorrow but I don't feel that my odds of passing are more than 50:50. I hate to think this way, but I'll keep doing 30-60 MCQs a night until score release, just in case I need to sit again in early April…sigh.

B - 77 (2.27.16)
A - 81 (4.18.16)
R -
F -

Roger Review + Ninja MCQs

[Cruzer]

I sit an noon tomorrow as well and am going into this exam with the lowest trending score I have ever had on 2 other tests I used NINJA MCQ. I spent so much time with NINJA notes writing and reading and now am reading pass keys in Becker and going over difficult SIMS in the book and MCQ's. I am trying to tie down Govt and NFP good and spent a majority of yesterday and will today on these two topics while trying to bring my score up a bit in the MCQ's in NINJA. I have passively listened to countless videos of Bob trying to understand everything. Hopefully I have some luck tomorrow because I am feeling a little doomed right now.

What is everyone else trending right now going into exam?

[A]

I'm sitting at 68%, was at 90% for the other three.

B - 77 (2.27.16)
A - 81 (4.18.16)
R -
F -

Roger Review + Ninja MCQs

[aatoural]

My averge of practice exams has been 67%. But I am not very helpful. I am concours that I had very little time to prepared only since January 24th and working full time with overtime. But my NTS is expiring this month.

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[Author]

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