30
AND BAD DEBT EXPENSE uraccounted4accounting.com
| Date post: | 08-Apr-2017 |
| Category: |
Education |
| Upload: | christopher-farrell-cpa |
| View: | 120 times |
| Download: | 0 times |
ALLOWANCE FORDOUBTFUL ACCOUNTS
ANDBAD DEBT EXPENSE
uraccounted4accounting.com
I n t h i s s e c t i o n w e w i l l c o v e r :uraccounted4accounting.com
What data do youneed?
I n t h i s s e c t i o n w e w i l l c o v e r :
What data do you need?
The income statementapproach
uraccounted4accounting.com
I n t h i s s e c t i o n w e w i l l c o v e r :
What data do you need?
The income statementapproachThe balancesheet approach
uraccounted4accounting.com
https://www.youtube.com/watch?v=IdNCFqx260
Click here for the narratedversion of this deck on
Takes approx 4 1/2 minutes.
SalesEnding A/RBeginning AllowanceWrite Offs
facebook.com/uraccounted4accounting/
YOU NEED
SalesEnding A/RBeginning AllowanceWrite Offs
facebook.com/uraccounted4accounting/
YOU NEED
SalesEnding A/RBeginning AllowanceWrite Offs
facebook.com/uraccounted4accounting/
YOU NEED
SalesEnding A/RBeginning AllowanceWrite Offs
facebook.com/uraccounted4accounting/
YOU NEED
Bad Debt ExpenseEnding Allowance
facebook.com/uraccounted4accounting/
YOU CAN GET TO
Bad Debt ExpenseEnding Allowance
facebook.com/uraccounted4accounting/
YOU CAN GET TO
% SALES
facebook.com/uraccounted4accounting/
INCOMESTATEMENTAPPROACH
% A/R
facebook.com/uraccounted4accounting/
BALANCESHEET
APPROACH
EXAMPLE
facebook.com/uraccounted4accounting/
Sales = $1,000,000Ending A/R = $150,000Beginning Allowance = $25,000Write Offs = $20,000
facebook.com/uraccounted4accounting/
=
$20,000
$1,000,000* 2%
facebook.com/uraccounted4accounting/
Bad Debt Expense $20,000
Allowance For BD $20,000
RESULT
facebook.com/uraccounted4accounting/
Bad Debt Expense =$20,000Ending Allowance = $25,000
facebook.com/uraccounted4accounting/
BAD DEBTS=
2% OF SALES
facebook.com/uraccounted4accounting/
Bad Debt Expense $25,000
Allowance For BD $25,000
RESULT
facebook.com/uraccounted4accounting/
Bad Debt Expense =$25,000Ending Allowance =$30,000
facebook.com/uraccounted4accounting/
ALLOWANCE=
20% OF SALES
R e c a p o f w h a t w e c o v e r e d :
uraccounted4accounting.com
Sales, ending a/r, beginningallowance and write offs
R e c a p o f w h a t w e c o v e r e d :
uraccounted4accounting.com
Sales, ending a/r, beginningallowance and write offsIncome statementapproach focuses on baddebt expense
R e c a p o f w h a t w e c o v e r e d :
uraccounted4accounting.com
Sales, ending a/r beginningallowance and write offsIncome statement approachfocuses on bad debtexpenseBalance sheet approachfocuses on the allowance
We hope this helps.If you found this presentation useful
pleaseLIKE, SHARE OR COMMENT
VISIT OUR WEBSITEand
OUR FACEBOOK PAGEThanks.
