Stop Guessing on Bad Debt Expense: Calculate It Like This
In this video, you'll learn how to master the Allowance for Doubtful Accounts Formula. This video will help you estimate the allowance for doubtful or uncollectable accounts with ease! ⬇️⬇️⬇️
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Timeline:
00:00 Introduction
00:21 Why the Allowance for Doubtful Accounts Is Needed
00:32 Why the Allowance Is a Countra-Asset Account
00:54 Two Methods to Account for Uncollectible Accounts (Direct Write-Off and Allowance)
01:22 Two Allowance Methods (Percentage-of-Receivable and Percentage-of-Sales)
02:18 EXAMPLE
03:33 Allowance T-Account (Increases and Decreases)
04:12 Calculation of the Allowance Balance Explained
07:20 Recommended Videos and Playlists
The textbook used in this video: Intermediate Accounting, Kieso ● Weygandt ● Warfield, 18th edition.
Additional resources:
https://www.amsa-online.com/free-reso...
American Modern School of Accounting is a nonprofit online vocational school that offers several programs to help adult learners to start or advance their careers in bookkeeping and accounting.
We offer the following programs:
• Certificate in Computerized Accounting with QuickBooks
• Certificate in Computerized Bookkeeping with QuickBooks
• Certificate in Computerized Bookkeeping with QuickBooks (Budget Plan)
For more information, visit our website: https://www.amsa-online.com/
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