| 1 |
A/R and Bad Debts Introduction
An introduction to Accounts Receivable and Bad Debts, and why we have to recognize bad debts.
|
7:09 | |
| 2 |
Direct Method
The Direct Method of accounting for bad debts is not used very often, and is super easy. We won't spend too much time here.
|
4:15 | |
| 3 |
The Allowance Method
The Allowance Method is where we spend most of our time when accounting for bad debts. Under the allowance method, we have two more methods: The Income Statement Method and the Balance Sheet Method. Here, we simply introduce the allowance method.
|
8:56 | |
| 4 |
Income Statement vs Balance Sheet Methods
Under tha Allowance Method of accounting for bad debts, we have two ways of coming up with our estimates: The Income Statement method and the Balance Sheet method. In this video, I'll show you how to remember which is which.
|
13:14 | |
| 5 |
Net Credit Sales
When you're using the Income Statement method, you calculate your Bad Debt Expense off of Net Credit Sales. Remember how to do Net Credit Sales?
|
5:20 | |
| 6 |
Write Offs and Reinstatements
At some point, you'll have to write off an account, but it's ok, because you have an allowance for that sort of thing.
|
8:26 | |
| 7 |
Notes Receivable
Notes Receivable seem a little out of place in this chapter, but they are pretty easy, so we'll tackle them quickly.
|
11:27 | |
| 8 |
Interest Bearing Notes
When you borrow money, you don't get it for free. Here, we're going to calculate the interest on an interest bearing loan.
|
8:26 | |
| 9 |
Non-interest Bearing Notes
"Non-interest bearing" is kind of a misnomer. You may not have to pay interest, but yo don't get all the cash up front, so it ends up being an interest expense anyway!
|
6:16 | |
| 10 |
Contingencies
A contingent liability is based on something else. You may or may not have to pay this sort of liability.
|
5:58 |
| Click Here to View All Chapter 8 Problems at Once | View | ||
| 1 | Liability Classification | Easy | |
| 2 | The Effect of Bad Debt Expense | Easy | |
| 3 | Calculating Bad Debts | Moderate | |
| 4 | Contingent Liabilities | Moderate | |
| 5 | Contingent Liabilities - Warranties | Moderate | |
| 6 | The Effect of Uncollectible Accounts | Moderate | |
| 7 | Using the Balance Sheet Method | Hard |