Still does not make sense The accounts receivable has now been collected so there must be no balance from allowance instead there is. For example: Recording Estimate of Bad Debts: Bad Debts Expense: 10k Allowance... 10k Writting of: Allowance... 10k A/R. 10K Recovery: A/R. 10k Allowance... 10k Cash. 10k A/R. 10k The accounts receivable has now 0 balance but there is still allowance for doubtful accounts
Allowances are recorded as adjusting journal entries at each period end. In your example, the entire A/R balance has been collected by period end, so the remaining allowance would then be reversed since it is no longer needed: Dr Allowance, Cr Bad Debt Expense.
Finally a honest video showing how the financial statements are impacted and the trade-off which is inevitable - this gets so overlooked. Thanks!
Crystal clear for students! Appreciate very much, Sir!
Explained this much better than my textbook could, Thank you!
The best explanation on RUclips, NOW I understand. Thanks!! it's been about an entire day of trying to understand this part.
*this is by far the most detailed and best structured explanation, thank you*
This video was great , I was so confused on how it effects the financial statements, thank you !
great video thank you please do stuff like this often you're really good at it!
How long have you been teaching? You are good at it. Thank you soo much. Most professors do not go into the simple way of explaining it.
Excellent video, thanks! I really liked the explanation of the timing at 7:41
Thank you sir, you are much better than all of my teachers haha
thank you so much ....my teacher made this look so hard
Excellent explanation! Thank you so much!
Thanks a lot sir! this was very helpful, God bless you and ur fam♥
Thank you for the video. This helped me so much! Please do more videos.
Learned a lot!
Best video
Very helpful
na gets ko rin 😭😭😭😭😍😍😍😍
Thank you sir
How can I print this out? I am creating a workbook for my board members to enlighten them on this process
Just tell me that bad debts to allowance for Doubtful debt entries will affect profit and loss account?
Any time the Bad Debt Expense account is debited, an expense will hit the Income Statement, and therefore profit.
Still does not make sense
The accounts receivable has now been collected so there must be no balance from allowance instead there is. For example:
Recording Estimate of Bad Debts:
Bad Debts Expense: 10k
Allowance... 10k
Writting of:
Allowance... 10k
A/R. 10K
Recovery:
A/R. 10k
Allowance... 10k
Cash. 10k
A/R. 10k
The accounts receivable has now 0 balance but there is still allowance for doubtful accounts
Allowances are recorded as adjusting journal entries at each period end. In your example, the entire A/R balance has been collected by period end, so the remaining allowance would then be reversed since it is no longer needed: Dr Allowance, Cr Bad Debt Expense.
@TheAccountingProf Thank you Prof