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 18, 2024
61 Reviews (239 ratings)

Reviews

1
Member's Profile
this is accounting 101. i took this course as an accountant with years of experience because the textbook material does not always work in the real world. i hoped some of the issues i have come across would be addressed. but this turned out to be a course for a college student, not cpe for an experienced accountant.

5
Anonymous Author
Great overview of Accounts Receivable bad debt allowance and the methods used by companies. The supporting materials are worth the course as they walk you through the t accounts and their ending balances for an illustrative example of the different methods.

3
Member's Profile
Question 2 on test had 2 identical answers. I was hoping for some information on how CECL guidance would impact approaching the allowance methodology. The class focused on basic methodology and debits and credits for this area.

5
Anonymous Author
It was good having a great overview on bad debt accounting. Every company has to live the reality that there may be a customer who may not pay their bill. So one needs to know how to handle that accounting wise.

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.

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.

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
Good course on A/R and how to account for bad debts. This course will ensure the attendee has a good understanding on Balance Sheet vs Income Statement impact as well as reversing entries.

5
Member's Profile
This course is a little math heavy, but in my opinion showing the math really helps explain the different methods for calculating and understanding the different methods for bad debt.

5
Anonymous Author
This is a basic high level review of A/R. I like this professor's style. He uses lots of examples and T-accounts. I don't work with AR currently so this was a good refresher.

4
Member's Profile
very thorough presentation. While I do prefer the "Live" instruction and examples Erik provides, I would generally prefer the ability to review slides as a reference as well

4
Member's Profile
This course was a good basic review of booking bad debt expense. I was hoping, though, for the course to talk about the new current expected credit loss "CECL" requirements.

4
Anonymous Author
Good insight of AR bad debt allowance and the explanation of the different methods used. I do prefer the ability to review the slides as a reference point though.

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
Although the instructor explained the different methods well. It was hard to read his handwriting. I would have preferred slides to study before the exam.

4
Anonymous Author
Great job of showing diff when receivable vs sales method used. Basic stuff, but review was very efficient without adding unnecessary, very basic items.

5
Anonymous Author
This was a good course on accounts receivable and the allowance for doubtful accounts / bad debt expense. I would recommend this as a refresher course.

5
Anonymous Author
Good refresher course. I like the explanation and the step by step examples. The instructor did a great job of explaining the material.

4
Member's Profile
Instructor was dry. He was not as excited about the subject matter as some of your other instructors are. Hard to stay engaged.

4
Member's Profile
streaming cut off every so often - might have been my connection. Answers c and d on one question were the same.

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
Anonymous Author
Nice review of accounts receivables and notes receivables albeit with the latter employing only simple interest.

3
Member's Profile
Course materials would be more effective with powerpoint slides. Course duration could be shortened to 1 hour.

4
Anonymous Author
You'll be able to grasp the basics of accounting. This is a great starter for those new to the accounting world

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.

5
Anonymous Author
Good course as s refresher for a very hard topic. The only ghunv i eiuld add is s credit expense scenario.

5
Anonymous Author
Great overall review of bad debt accounting as well as the difference between the different principles.

5
Anonymous Author
Good review of bad debt, how to calculate and how to record. Excellent practical examples. Thank you

4
Anonymous Author
The instructor was very clear in presentation and explained concepts with visual examples. Good class.

4
Member's Profile
The concepts were well explained and easy to understand. Improved graphics would be nice to have.

5
Member's Profile
very good session. The material was visually via T accounts and verbally explained.

4
Member's Profile
It seems this was more of a GL training than AR training and was a little long.

4
Member's Profile
A reasonably good course with informative material well-suited for the purpose.

5
Anonymous Author
Great thorough course. Good to keep slides and examples for future reference

5
Member's Profile
Very useful overview and refresh on BDE and AFDA with very good examples.

5
Member's Profile
This course was a good overview of methods for accounting for bad debts.

5
Member's Profile
Goes over the 2 methods for A/R Bad Debt with examples and explanations.

5
Anonymous Author
Nice arrangement of examples - Taccounts really help with visualization

5
Member's Profile
Good beginner to A/R and accounting for allowance for bad debts class.

4
Anonymous Author
Please show graded answers to the exam. Easy to follow along examples.

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.

4
Anonymous Author
Basic coverage of bad debt expense, good refresher.

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 .
Course Questions and Answers(2 Questions)
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

Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Accounts Receivable11:16
Accounts Receivable
  Allowance for Bad Debts7:09
  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
CONCLUSION
  Example T Accounts Bad Debt7:55
Continuous Play
  8 Core Financial Accounting:Accounts Receivable1:19:16
SUPPORTING MATERIALS
  Notes Template: Accounts ReceivablePDF
  Workbook: Accounts ReceivablePDF
REVIEW & TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam