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.
Course Series
This course is included in the following series:
11 CoursesBack to the Basics: Accounting Fundamentals
- Accounting Review: The Basics of Debits and Credits
- Transaction Analysis, T-Accounts, Debits and Credits, and Trial Balances
- Accounting Review: Overview of Financial Statements; P&L, Balance Sheet, and Cash Flow
- The Accounting Equation and Financial Statements
- Bank Reconciliations, Cash, and Internal Controls
- Accounts Receivable Training: Bad Debts
- Equipment and Depreciation
- Inventory Costing
- Purchase and Sale of Inventory
- The Adjusting Process
- The Closing Process
Learning Objectives
- 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
64 Reviews (245 ratings)
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.
One of these questions has the same answer twice. I think number 2
Tim,
#1 and #2 on the review questions are very similar in that they have the same setup. However, #1 uses the Receivables method (Balance Sheet approach), and #2 uses the Sales method (Income Statement approach).
-Erik