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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

  1. Accounting Review: The Basics of Debits and Credits
  2. Transaction Analysis, T-Accounts, Debits and Credits, and Trial Balances
  3. Accounting Review: Overview of Financial Statements; P&L, Balance Sheet, and Cash Flow
  4. The Accounting Equation and Financial Statements
  5. Bank Reconciliations, Cash, and Internal Controls
  6. Accounts Receivable Training: Bad Debts
  7. Equipment and Depreciation
  8. Inventory Costing
  9. Purchase and Sale of Inventory
  10. The Adjusting Process
  11. 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
Last updated/reviewed: March 09, 2018

30 Reviews (114 ratings)Reviews

4
Member's Profile
Nice course showing the difference between the Sales method and the Receivables method for accounting for bad debts. One of the questions had two answers that were exactly the same.
4
Anonymous Author
I really enjoyed the course. One thing I would prefer is if there were slides for each topic. Overall, it was really great and I appreciated all of the examples that the instructor went through.
Member's Profile
There are several very poorly written questions on this test. For example q5 says "balance in bad debt expense". You need to put some standard accounting terminology around these questions
5
Member's Profile
This A/R allowance course is a vital basic requirement to understand for just about anyone in the financial world. I am a CPA and I learned something new. Wow.
Anonymous Author
This was a good refresher or introductory course. However I wish the instructor would give the answers on the final exam so we can learn from our mistakes.
3
Anonymous Author
Nice review of accounts receivables and notes receivables albeit with the latter employing only simple interest.
3
Member's Profile
Hate that you cannot see why your test answers are wrong. How can you learn from this. Pls consider changing.
3
Member's Profile
Course materials would be more effective with powerpoint slides. Course duration could be shortened to 1 hour.
4
Member's Profile
This training covered a good amount of information about allowances for bad debt and Accounts receivables.
Member's Profile
Course covers a lot of information but the instructor does a good job of illustrating the entries needed.
5
Member's Profile
Good review of the basics. Examples require you to think through and do the math to insure understanding.
4
Anonymous Author
Please show graded answers to the exam. Easy to follow along examples.
5
Member's Profile
Good beginner to A/R and accounting for allowance for bad debts class.
4
Member's Profile
this course is very helpful though the presentation can be improved.
5
Member's Profile
This review was helpful as I had forgotten much of the material.
4
Anonymous Author
Wll presented and made understanding easy with good examples
5
Anonymous Author
This is very good refresher in Accounts Receivable entries.
5
Anonymous Author
Instructor is clear and course easy to follow
5
Anonymous Author
Tough course for an entry level.
5
Member's Profile
Great course! Very informative.
5
Anonymous Author
Review of allowance method
5
Member's Profile
Great review. Thanks!
4
Member's Profile
Great Presentation
4
Anonymous Author
valued lesson
4
Anonymous Author
Good lesson.
Anonymous Author
Good review
4
Member's Profile
Good
Anonymous Author
sdff
4
Member's Profile
fine
3
Member's Profile
!

Prerequisites

Course Complexity: Foundational

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.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .

2 QuestionsCourse Questions and Answers

Member's Profile

One of these questions has the same answer twice. I think number 2

Member's Profile

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

Course Syllabus
INTRODUCTION AND OVERVIEW
Accounts Receivable
  7:09Allowance for Bad Debts
  12:43Demonstration of Sales Method
  8:03Demonstration of Receivables Method
  3:39Reasoning on Allowance for Bad Debts
  10:19Example of Un-collectability
  11:22Notes Receivable
  6:49Reviewing Bad Debt T Accounts
CONCLUSION
  7:55Example T Accounts Bad Debt
Continuous Play
  1:19:168 Core Financial Accounting:Accounts Receivable
SUPPORTING MATERIALS
  PDFNotes Template: Accounts Receivable
  PDFWorkbook: Accounts Receivable
REVIEW & TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM