4.1.2 Trade receivables 4.1.3 Nontrade receivables ∨a| uation issue 4.2. Initial recording based on expected future cash flows 4.2.2 Estimation of the probability of collection 5. 1 Cash(sales) discounts 5.2 Sales returns and allowances 6. Valuation of accounts receivable for uncollectible accounts 6.1 Estimated bad debts method 6.1. 1 Income statement approach 6.1.2 Balance sheet approach 6.2 Recording bad debts 6.3 Writing off uncollectible accounts 6.4 Collection of an account previously written-off Generating immediate cash from accounts receivable 7.1 Conceptual issues 7.2 Pledging 7.3 Assignment 7.4 7.5 Disclosure of fingne 8. Notes receivable (short-term) Lesson 7 INVENTORIES 1. Classifications of inventory Ill. Alternative inventory systems 2. 1 Perpet 2.2 Periodic 3. Items to be included in inventory quantities 4. Determination of inventory costs 4. 1 Items included in inventory cost 4.2 Discounts as reductions in cost 4.3 Purchase returns and allowances 4.4 Summary 5. Inventory valuation method 5. 1 Specific identification 5. 2 First-in, first-out (FIF 5.3 Average cost 5. 4 Last-in, first-out (LIFO) 6. Inventory valuation at other than cost Lower of cost or market (LCM) 6. 1. 1 Application of LCM- 4 - 4.1.2 Trade receivables 4.1.3 Nontrade receivables 4.2 Valuation issues 4.2.1 Initial recording based on expected future cash flows 4.2.2 Estimation of the probability of collection 5. Accounts receivable 5. 1 Cash (sales) discounts 5.2 Sales returns and allowances 6. Valuation of accounts receivable for uncollectible accounts 6.1 Estimated bad debts method 6.1.1 Income statement approach 6.1.2Balance sheet approach 6.2 Recording bad debts 6.3 Writing off uncollectible accounts 6.4 Collection of an account previously written-off 6.5 Direct write-off method 7. Generating immediate cash from accounts receivable 7.1 Conceptual issues 7.2 Pledging 7.3 Assignment 7.4 Factoring of receivables 7.5 Disclosure of financing agreements 8. Notes receivable (short-term) Lesson 7 INVENTORIES 1. Classifications of inventory III. Alternative inventory systems 2. 1 Perpetual 2. 2 Periodic 3. Items to be included in inventory quantities 4. Determination of inventory costs 4.1 Items included in inventory cost. 4.2 Discounts as reductions in cost. 4.3 Purchase returns and allowances. 4.4 Summary 5. Inventory valuation methods 5. 1 Specific identification 5. 2 First-in, first-out (FIFO) 5. 3 Average cost 5. 4 Last-in, first-out (LIFO) 5. 5 Comparison 6. Inventory valuation at other than cost 6. 1 Lower of cost or market (LCM) 6. 1.1 Application of LCM