This accounts receivable training covers the proper accounting for receivables and related issues surrounding uncollectible accounts/bad debts are presented in this course. A brief discussion of the direct write-off method will explain why the allowance method is the better approach. The subtle differences between the Balance Sheet approach vs. the Income Statement approach are presented. Additionally, simple interest on notes receivable are calculated and detailed examples are provided.
Prerequisites
No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.
Learning Objective
- Define key terms regarding receivables and bad debts
- Discover the sequence of events related to the three primary journal entries related to accounting for bad debts
- Recognize the impact of accounting for bad debts on the related accounts
- Discover how to calculate values used in the Allowance Method of accounting for bad debts
- Discover how to calculate simple interest on notes receivable
Last updated/reviewed: March 18, 2024
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Erik Slayter
Accounting Professor at Cal Poly
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INTRODUCTION AND OVERVIEW
- Introduction to Accounts Receivable 11:16
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Accounts Receivable
- Allowance for Bad Debts 7:09
- Demonstration of Sales Method 12:43
- Demonstration of Receivables Method 8:03
- Reasoning on Allowance for Bad Debts 3:39
- Example of Un-collectability 10:19
- Notes Receivable 11:22
- Reviewing Bad Debt T Accounts 6:49
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CONCLUSION
- Example T Accounts Bad Debt 7:55
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Continuous Play
- 8 Core Financial Accounting:Accounts Receivable 1:19:16
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SUPPORTING MATERIALS
- Notes Template: Accounts Receivable PDF
- Workbook: Accounts Receivable PDF
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REVIEW & TEST
- REVIEW QUESTIONS quiz
- FINAL EXAM exam
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