I've spoken with 2 different professors and didn't get the % of Receivables when there is a DR balance. I watched your 17 minute video and I get it!! Thank you so much. I really appreciate it. My homework is going to be a breeze and I'm not stressing this weeks quiz. Priceless!!
Okay, I know this is a 2013 video but I wanted you to know that here in 2019, you saved me. Read the entire chapter, practiced the exercises with the solutions manual, and I still didn't get it. They didn't explain the reasoning for the calculations. You were able to break the mental blockage I had, I finally get it now, thank you so much.
I've been struggling with this topic for a couple of weeks - my instructor has been calling the methods Sales and Receivables and I was so so lost. This video has helped a lot. Thank you!
Accounting is my major and it is a love-hate relationship. I love it, but it is difficult to understand at times. Thank you so much for your videos, you have made accounting understandable to me. Keep it up, you are helping a ton of people!
+sean mayer having passion is the key to being a good accountant. Thanks so much for your comment. I'm so glad I'm able to help you with something that you love.
Your explanation is great. I am so thankful for your generosity to offer your time and knowledge and talent as a present to those who need help to understand. thnak you.
Wow, what a way to explain accounting concepts easily! I have an exam coming up and I will not forget the rent+overdrawn example. Thank you so much for sharing your knowledge!
i am glad i watched your videos on A/R. simple and well thought out explanations, anybody can understand. i read some comments about other professors or instructors. its all about how you explain it.
So good and clear~ it is nice to provide an example and tell us the difference between these two method. And now I have got how to make the statements. Thank u so much !
Dang!! I've been studying and trying to understand this for 2 weeks. I watched this video and the one before this one and I totally get it now. Thank you so much. I really appreciate it.
Thank you again for your time and explaining Bad Debt Expense and Allowance for Doubtful Accounts. It is appreciated more than you know. I have one question, if a customer paid their account and the customers account has been written off, how do we make the adjustment? Thank you again for your help.
+Melissa Latulippe If the customer pays a balance that is written off, reverse the entry you made to write off the account. Essentially, you need to restore the account balance before accepting the customer payment. Debit Accounts Receivable and Credit Allowance for Uncollectible Accounts.
+Melissa Latulippe You can see an example here: accountinginfocus.com/financial-accounting/accounts-receivable/direct-write-off-and-allowance-methods-for-dealing-with-bad-debt/
Great video & method to clarify the different methods. One minor criticism is the use of the colour purple on a black background which is difficult to see. Just to clarify, the 2 methods (% of sales & % of A/R) give different results correct? The 20k you mentioned is not the same - ie. in the I/S method the 20k is NOT a balance, while in the B/S method it is a final balance of that account. Thanks.
Odeh Odeh Thank you for your feedback on the purple. I will use a lighter shade in the future. You are correct in your analysis. When using the income statement method, you are calculating the bad debt expense. This is added to your allowance balance. When using a balance sheet method, you are calculating the new balance in the allowance account. Therefore, you must record the amount of bad debt expense that you would need to add to the current balance in the allowance account to bring the balance to the amount you calculated using the balance sheet method.
Thank you very much Kristin, you are so helpful to me going through the accounting final exams. I watched the other guys (Ininjanotes, khanacademy) but they are just talking too much about other craps rather than go straight to the point that i need like you. Other things that: You make your video too long to write stuff, i mean if you can write faster or cut the process of you writing it would be less boring to watch. Anway, thanks Kristin.!
Thank you so much for the brilliant explanation. One question though, what would happen if the allowance for doubtful accounts had an initial balance that exceeded the current period Allowance for doubtful accounts? So meaning what would happen if our Allowance for doubtful accounts in the initial question was $22,000, and we calculated the $20,000 for the current period Allowance for DA?
Since we are calculating bad debt at the end of an accounting cycle, when you gave the example of the $9,000 debit balance for Allowance of Doubtful Accounts in the last portion of this video, does this mean that this company has miscalculated their bad debt expense of the PRIOR year by $9,000 or would/could this include bad debt that is being realized during this fiscal period as well? For Example: say at the end of the PRIOR fiscal period, they calculate the Allowance to be $7,750. At the end of THIS fiscal period and they have a $9,000 debit balance for their Allowance, they realized (or recorded) bad debt of $16,750 (they used up the $7,750 allowance of the previous fiscal period PLUS and additional $9,000?)through out the fiscal period. So the next fiscal year, they will have $29,000 allowance (overdraft protection). OR could it be bad debt that they have realized since the beginning of this fiscal period and didn't use up any of last fiscal year's allowances? or even a combo of both?
If the allowance account goes into a debit balance, there was not enough bad debt recorded in the prior period. This happened to many companies in 2008-2011 during the financial crisis. In the current period, the company would need to show higher than normal bad debt expense to cover the debit in the allowance account. Essentially, the company would need to put enough into the allowance account to cover the amount it believes will go bad from this year's sales or receivables (depending on if the company is using sales or A/R method) plus enough to cover the debit balance in the allowance account.
thank you so much for making this topic so easy to understand.. can u clarify that in case Income statement method, in balance sheet, $32000will be deducted from account receivable as allowance of doubtful account, but on the contrary in balance sheet method $20000will be deducted from account receivable as allowance of doubtful account
For example I have to solve for upcoming years like so: (refer to attached docx) I used the %of sales method and got $5,400; $6000, & $6,150 for each year (2007,2008 & 2009) But it didn’t look right I feel like it needs more since it’s providing the allowance for DA for Jan 1, 2007. I would really appreciate your assistance!
question, the 200k of account receivable is the ending balance of a/r? so does that mean that to calculate the amount that is going to be uncollectible we have to use the ending balance of A/R?
Hey, great explanation. But, there is one thing that really annoyed me regarding to Allowance method. If in direct write off method we recover the bad debt expense account in income statement as revenue/uncollectible recovery or what ever the account is, why wouldn't we do the same thing in the allowance method. Every book always explained that we need two entries to recover bad debt which had been written off(when the customer paid the doubtful account which had been written off): 1) Receivables(Dr),Allowance(Cr) , and 2)Cash(Dr),Receivables(Cr). in my logic, if the Receivables already paid, it means the allowance should be removed too, but these two entries ignore the fact that we already recorded the bad debt expense in the first place. In my opinion, we need one more entry : Allowance(Dr),Retained Earning(Cr) or Bad debt recovery(Cr-Income statement). Because the doubtful account wasn't there anymore when the receivables already paid and we need to recover the retained earning because the expenses didn't really happen. What do you thing about my case? Please help me to solve this case. Thanks.
+Denny The theory behind the allowance method is that there is some percentage of sales or accounts receivable that will not be collected. These percentages are based on the company's collection history. When an account is written off and later collected, all that means is that particular account is not a bad debt. If history holds true, another account will end up being uncollectable. That is why we restore the balance in the allowance account when we restore the receivable. According to the matching principle, the bad debt is recorded with the sale. The allowance method allows the company to adhere to the matching principle and write off bad accounts as they occur.
Thanks for the you detailed example. The time you take and your notation style is very helpful. My question is: how do you note the set up of a bad debt account using the allowance method? Is there a tax implication NIBT/NIAT? Am I over thinking this? Thank you, again.
+Elias McClellan From a GAAP perspective, a company is required to use the allowance method. Therefore, the company would be required to note that there is a departure from GAAP if the direct write-off method is used. There many be a tax implication if the direct write-off method did not approximate GAAP. The company may record additional bad debt expense to make up for the lack of allowance in previous years. This additional bad debt expense would lower NIBT, the provision for income tax, and NIAT. I hope that response helped. Please feel free to ask further questions.
hey just found this video. we are studying accounts receivable and allowance for DA. I understand the concept but when you did the balance sheet method, why is the amount for the balance? why are they different? thank you so much
Can you move to Florida. Apply at University of Central Florida and teach here because what something as simple as this becomes a mission impossible for these teachers.
I'd get you a job at UConn if I could! We are desperately in need of professors who can actually teach-- your vidoes are wonderful and are helping me a lot in intermediate, thank you :D
for the percentage of sales method, are we using total revenue (cash sales + credit sales)?, or are we just using credit revenue sales (cause we already have the cash)?
Very helpful video! My question is regarding the percentage of sales method. If I have a returns and allowance balance regarding credit sales, what would I be doing with this number? Thanks!
+Sarah Tumler typically, you would use net credit sales in the calculation. Therefore, you should subtract returns and allowances and discounts from credit sales.
thank you so much for sharing us your knowledge, like really the way you discuss it was so easy to understand, thank you thank you so much... btw I'm a student 😊
Can you do a journal entry to show how we would show the 20,000 for the end balance in the allowance for doubtful accounts. Like I have a question that ask for the year-end adjusting entries to provide for the write-offs and to bring the balance of the AFDA account to the required balance as at Dec 31. I understand the write off journal entry is Debit to allowance for doubtful accounts and credit accounts receivable and to show the bad debt amount we do a separate journal entry where we debit bad debt expense and credit allowance for doubtful accounts but is there a seperate journal entry to show the ending balance for the allowance for doubtful accounts that I can see in the T-account?
Hi, I don't understand as to why you put the percentage of sales (income sales method) within the T-account and the percentage of credit sales(balance sales) at the end of the T-account. Can you further elaborate? Thank you very much
+Charles Lam The percentage of sales method calculates the amount of bad debt to be recorded. This amount is added to the balance in the allowance account. When you use the percentage of receivables method, you are calculating what the balance in the allowance account should be. That is why it is at the end of the T-account. You must use that balance to calculate the amount of the bad debt that goes into the journal entry.
I enjoy how thorough you are. No matter how many views you get, just remember that you have a solid 14.5 k people who appreciate you. Thank you
Stephen Ngo Thank you so much! It really helps to know that people are enjoying the videos and finding them helpful!
@@allkristiningram These videos still helps alot few years later!!
Thanks Matthew!
I've spoken with 2 different professors and didn't get the % of Receivables when there is a DR balance. I watched your 17 minute video and I get it!! Thank you so much. I really appreciate it. My homework is going to be a breeze and I'm not stressing this weeks quiz. Priceless!!
Angie Linza I'm so glad you understand it now! Good luck with your quiz. Thanks for commenting!
6 years later, at 2:30am, exam the morning, just want to say thank your soul!!!
You're welcome! I hope your exam went well!
this video is so helpful i'm literally commenting 7 years from release and it's saving me before me midterm ty :)
I'm so glad you found it helpful.
I saw this video again for revising a concept for CFA and every time I'll see this, I'll drop in a thank you!
You're welcome again!
Okay, I know this is a 2013 video but I wanted you to know that here in 2019, you saved me. Read the entire chapter, practiced the exercises with the solutions manual, and I still didn't get it. They didn't explain the reasoning for the calculations. You were able to break the mental blockage I had, I finally get it now, thank you so much.
You are most welcome. Luckily, accounting is timeless.
The colour separation really helped me understand the bigger picture of this concept. Thank you so much 🙏🏼
You’re welcome 😊 Glad it was helpful!
This video is great! I’m studying for an accounting exam and you made clear all my doubts about this two methods. Thanks a lot for sharing! 😁
I love this. I have discussed this with my professor a hundred times and could never understand the placement in the t-accounts
+Khadijah Smith I'm so glad I could help you with this difficult topic.
Thx a lot Miss. Kristin, you are one of the best teachers on the youtube. 💙💙💙💙
You are awesome. I was so confused, but your step by step, detailed information is a breath of fresh air. Thank you
+SLA PapJewelry So glad I could help! Thanks for commenting!
This video was so helpful. You broke everything down and went step by step making it easy to understand. Thanks!!!
You're welcome! Glad it was helpful.
I've been struggling with this topic for a couple of weeks - my instructor has been calling the methods Sales and Receivables and I was so so lost. This video has helped a lot. Thank you!
You're welcome! So glad I could help!
Accounting is my major and it is a love-hate relationship. I love it, but it is difficult to understand at times. Thank you so much for your videos, you have made accounting understandable to me. Keep it up, you are helping a ton of people!
+sean mayer having passion is the key to being a good accountant. Thanks so much for your comment. I'm so glad I'm able to help you with something that you love.
Can't even tell you how much I appreciated this video as well as the previous! More helpful than my professor!!! Thank you
You're very welcome! Good luck with your class.
Thank you!! Your video made this theory click in my brain. I appreciate this video so much!
You're so welcome! I'm glad it was helpful.
One of the best videos out there. I have been confused for a month and this videos cleared all my confusion!
I'm so glad I could help! Thanks for commenting.
Thank you for clear instruction. This is very helpful. I was struggling with balance sheet method for calculating bad debt expense, and this helps.
Appreciate this. Most explanations focus on the mechanics, but your videos put more effort into understanding and how the accounts and process work.
Thank you for your comment. I want students to really understand the material, not just memorize for a test.
My first time on this channel as I was looking for help to understand this complicated topic. Thank you for the amazing explanation!
You're welcome! Glad it was helpful!
Your explanation is great. I am so thankful for your generosity to offer your time and knowledge and talent as a present to those who need help to understand. thnak you.
You are so welcome! Thank you!
literal life saver an easy concept such as the t chart was giving me so much trouble . until i watched this video thank you so much
You're welcome. Glad I could help!
my textbook did a horrible job of explaining this, thank you so much for clearing it up for me!! (I'm a BS in accounting student.)
You're very welcome! I'm glad it helped.
Wow, what a way to explain accounting concepts easily! I have an exam coming up and I will not forget the rent+overdrawn example. Thank you so much for sharing your knowledge!
Glad it was helpful! Best of luck!
Thank you for this great example! Made it very clear and easy to follow.
You're very welcome!
i am glad i watched your videos on A/R. simple and well thought out explanations, anybody can understand. i read some comments about other professors or instructors. its all about how you explain it.
+ForodhaHouse I'm so glad you found the videos helpful! Thanks for commenting!
So good and clear~ it is nice to provide an example and tell us the difference between these two method. And now I have got how to make the statements. Thank u so much !
You're welcome!
Thank you for the way you explain this adjusting entries 🙌🏼
Glad it was helpful!
Thank you, breaking it up into balance sheet and income statement is helpful! I have a test coming up wish me luck
Best of luck!
Thank you so much! The part that I was confused over got resolved thanks to your lecture!
Your welcome! Glad it helped!
Excellent explanation. Your explanations are very relatable. Thank you Kristin
Glad it was helpful! Your so welcome.
thank you so much! Ive learned more in this one video than I have all semester 🙌🏽
Your welcome! I'm so glad!
Very easy and straight forward teaching. I like it.
Thanks! Glad you enjoyed it.
Best Lecture for Bad Debt Expenses adjust. Thanks for your Perfect lecture.
Thank you for the very nice comment. I'm so glad I was able to help you understand the topic better.
God bless you and your comforting voice
+ILikeHouseMusik Thank you. I'm so glad you found the video helpful!
Kristin, I'm so happy that I found you...thank you so much for this video...
Priscila A You're welcome. I'm so glad I've been able to help your understanding of the material!
You are awesome . Explained beautifully . I got a good grade from just your videos . Thanks !
Thank you! So proud of you for working hard and getting a good grade. Glad I could help.
This is the best explanation I've seen. Thanks!
+Sarah Kenney you're welcome. Thanks for the compliment!
Thank you Kristin.Your method has helped me a lot. Greetings from Papua New Guinea
You're welcome. Glad I could help!
The best video on this topic out there!
Glad it was helpful!
The video helped me to have a better understanding of this topic. Thanks!
You're welcome! Glad I could help!
Thank you so so much.. I had been struggling to understand this since ages and always ended up skipping this in my exams, not anymore!
You're very welcome!
you’re saving me from failing my accounting test soon 🥺 THANK YOU!!!
Your welcome! Happy to help!
Dang!! I've been studying and trying to understand this for 2 weeks. I watched this video and the one before this one and I totally get it now. Thank you so much. I really appreciate it.
You're welcome!
Kristin! I am studying for the CMA you are amazing! Thanks so much I am so glad I found you!
Jennifer Nabor Thanks so much for your comment! I'm glad you found the videos helpful. Good luck with the CMA!
Thank you again for your time and explaining Bad Debt Expense and Allowance for Doubtful Accounts. It is appreciated more than you know. I have one question, if a customer paid their account and the customers account has been written off, how do we make the adjustment? Thank you again for your help.
+Melissa Latulippe If the customer pays a balance that is written off, reverse the entry you made to write off the account. Essentially, you need to restore the account balance before accepting the customer payment. Debit Accounts Receivable and Credit Allowance for Uncollectible Accounts.
+Melissa Latulippe You can see an example here: accountinginfocus.com/financial-accounting/accounts-receivable/direct-write-off-and-allowance-methods-for-dealing-with-bad-debt/
Thank you so much for your videos and clear explanations Kristin, they are the most helpful ones that I have seen!
hcabrera28 I am so glad you found my videos helpful. Thank you for commenting.
Fantastic video.. I am surprised that you don't have more subscribers.
I appreciate that!
Thank You I will ease the test tomorrow of this video.
very easy-understand explanation, thank you very much
Glad it was helpful!
You made this very easy to understand!
I'm so glad I could help. Thanks for commenting!
soooooooooo Helpful! I have a final tmr and was stressing about this issue.
+Ardalan Aziznia glad I could help. Good luck with your final and thanks for leaving a comment. I appreciate it.
thank you a looot!!! i will watch all your videos right now, bcz its so clear to me !! youre great !
You're welcome. Thanks for watching!
This example is amazing. Thank very much :) I was looking for that last part for three days. The Allowance account with debit balance. of $9,000 :)
Thank you Kristin i really enjoyed with your method .
please keep going
haitham elsawy Thank you. I'm so glad you found my video helpful.
Great video & method to clarify the different methods. One minor criticism is the use of the colour purple on a black background which is difficult to see. Just to clarify, the 2 methods (% of sales & % of A/R) give different results correct? The 20k you mentioned is not the same - ie. in the I/S method the 20k is NOT a balance, while in the B/S method it is a final balance of that account. Thanks.
Odeh Odeh Thank you for your feedback on the purple. I will use a lighter shade in the future.
You are correct in your analysis. When using the income statement method, you are calculating the bad debt expense. This is added to your allowance balance. When using a balance sheet method, you are calculating the new balance in the allowance account. Therefore, you must record the amount of bad debt expense that you would need to add to the current balance in the allowance account to bring the balance to the amount you calculated using the balance sheet method.
This video was very helpful in your class. Thank you.
+Adrienne Brown You're welcome. Thanks for commenting!
You explained that so perfectly!! Thank you!
You're so welcome!
Thank you! It is a great video. It's clear and easy to understand.
You're welcome!
Wow, great video! Please continue doing more! You are wonderful.
+Michael Geary Glad you found the video helpful! Thanks for commenting!
A little late on the bandwagon here but great video! Thanks a ton.
You're welcome.
Thank you for this video! Now I will pass my test for sure :D
ragamufdebora I'm so glad I could help you study for your test! Good luck!
Thank you very much Kristin, you are so helpful to me going through the accounting final exams. I watched the other guys (Ininjanotes, khanacademy) but they are just talking too much about other craps rather than go straight to the point that i need like you. Other things that: You make your video too long to write stuff, i mean if you can write faster or cut the process of you writing it would be less boring to watch.
Anway, thanks Kristin.!
Thank you for your comment and feedback. I will work on writing a bit faster in the future. I appreciate you watching and sharing my video!
Thank you so much for the brilliant explanation. One question though, what would happen if the allowance for doubtful accounts had an initial balance that exceeded the current period Allowance for doubtful accounts? So meaning what would happen if our Allowance for doubtful accounts in the initial question was $22,000, and we calculated the $20,000 for the current period Allowance for DA?
You would need to reduce the Allowance account by debiting allowance and crediting bad debt expense.
Thank you madam you are a life saver
You are most welcome!
Thaanks a million for this , i legit tried to figure this out for a whole a week and it didn't work
You're welcome. So glad I could help.
Thank you very much for this, I was only able to understand it after your explanation thank you so much.
You're welcome. Thanks for commenting!
I would love to see how this plays out as a Landlord with property damages exceeding the security deposit.
Since we are calculating bad debt at the end of an accounting cycle, when you gave the example of the $9,000 debit balance for Allowance of Doubtful Accounts in the last portion of this video, does this mean that this company has miscalculated their bad debt expense of the PRIOR year by $9,000 or would/could this include bad debt that is being realized during this fiscal period as well? For Example: say at the end of the PRIOR fiscal period, they calculate the Allowance to be $7,750. At the end of THIS fiscal period and they have a $9,000 debit balance for their Allowance, they realized (or recorded) bad debt of $16,750 (they used up the $7,750 allowance of the previous fiscal period PLUS and additional $9,000?)through out the fiscal period. So the next fiscal year, they will have $29,000 allowance (overdraft protection). OR could it be bad debt that they have realized since the beginning of this fiscal period and didn't use up any of last fiscal year's allowances? or even a combo of both?
If the allowance account goes into a debit balance, there was not enough bad debt recorded in the prior period. This happened to many companies in 2008-2011 during the financial crisis. In the current period, the company would need to show higher than normal bad debt expense to cover the debit in the allowance account. Essentially, the company would need to put enough into the allowance account to cover the amount it believes will go bad from this year's sales or receivables (depending on if the company is using sales or A/R method) plus enough to cover the debit balance in the allowance account.
video pace is a bit slow... but info is great! i understand the concept better now!
You can always increase the speed if needed.
thank you so much for making this topic so easy to understand.. can u clarify that in case Income statement method, in balance sheet, $32000will be deducted from account receivable as allowance of doubtful account, but on the contrary in balance sheet method $20000will be deducted from account receivable as allowance of doubtful account
You will always deduct the value on the allowance account from accounts receivable.
Thank you Kristin! this helps me alot!
I'm so glad!
For example I have to solve for upcoming years like so: (refer to attached docx) I used the %of sales method and got $5,400; $6000, & $6,150 for each year (2007,2008 & 2009) But it didn’t look right I feel like it needs more since it’s providing the allowance for DA for Jan 1, 2007.
I would really appreciate your assistance!
amazing, this made so much sense to me and I have my final on Wednesday :) thank you so much!
You're welcome. Good luck!
Really thank you sooooo much you make me understanding
You're welcome!
Your videos are very helpful, thank you!
+Hunter Hein You're welcome. Glad I could help.
Excellent teacher! Thank you.
Yasmin Sanchez Thank you and you're welcome!
Helpful and strongly recommend this
Thank you!
question, the 200k of account receivable is the ending balance of a/r? so does that mean that to calculate the amount that is going to be uncollectible we have to use the ending balance of A/R?
Hey, great explanation. But, there is one thing that really annoyed me regarding to Allowance method. If in direct write off method we recover the bad debt expense account in income statement as revenue/uncollectible recovery or what ever the account is, why wouldn't we do the same thing in the allowance method.
Every book always explained that we need two entries to recover bad debt which had been written off(when the customer paid the doubtful account which had been written off): 1) Receivables(Dr),Allowance(Cr) , and 2)Cash(Dr),Receivables(Cr).
in my logic, if the Receivables already paid, it means the allowance should be removed too, but these two entries ignore the fact that we already recorded the bad debt expense in the first place. In my opinion, we need one more entry : Allowance(Dr),Retained Earning(Cr) or Bad debt recovery(Cr-Income statement). Because the doubtful account wasn't there anymore when the receivables already paid and we need to recover the retained earning because the expenses didn't really happen.
What do you thing about my case? Please help me to solve this case. Thanks.
+Denny The theory behind the allowance method is that there is some percentage of sales or accounts receivable that will not be collected. These percentages are based on the company's collection history. When an account is written off and later collected, all that means is that particular account is not a bad debt. If history holds true, another account will end up being uncollectable. That is why we restore the balance in the allowance account when we restore the receivable.
According to the matching principle, the bad debt is recorded with the sale. The allowance method allows the company to adhere to the matching principle and write off bad accounts as they occur.
+Kristin Ingram I see! Thanks for your reply, it's really helpful.
+Denny So glad I could help!
Thanks for the you detailed example. The time you take and your notation style is very helpful. My question is: how do you note the set up of a bad debt account using the allowance method? Is there a tax implication NIBT/NIAT? Am I over thinking this? Thank you, again.
+Elias McClellan From a GAAP perspective, a company is required to use the allowance method. Therefore, the company would be required to note that there is a departure from GAAP if the direct write-off method is used.
There many be a tax implication if the direct write-off method did not approximate GAAP. The company may record additional bad debt expense to make up for the lack of allowance in previous years. This additional bad debt expense would lower NIBT, the provision for income tax, and NIAT.
I hope that response helped. Please feel free to ask further questions.
Kristin Ingram Thank you, again. This is very helpful.
+Elias McClellan You're welcome!
hey just found this video. we are studying accounts receivable and allowance for DA. I understand the concept but when you did the balance sheet method, why is the amount for the balance? why are they different? thank you so much
+wenyan li each of the methods will give a different answer. They should not be the same.
Thank you. Do you reverse the bad debt expense if not used by year end (12/31/xx)?
This was very helpful
Thankyouuuu!
You're welcome 😊 Glad it was helpful!
Can you move to Florida. Apply at University of Central Florida and teach here because what something as simple as this becomes a mission impossible for these teachers.
Josue rodriguez Get me a job in Florida and I would be there in a heartbeat! It's still cold in Connecticut and we still have a ton of snow!
Come apply at UCF! They pay enormously. My accounting teacher is horrible.
I'd get you a job at UConn if I could! We are desperately in need of professors who can actually teach-- your vidoes are wonderful and are helping me a lot in intermediate, thank you :D
Glad I could help. I'm not that far from UConn.
for the percentage of sales method, are we using total revenue (cash sales + credit sales)?, or are we just using credit revenue sales (cause we already have the cash)?
Hi Kristin. Thank you for the video. Can you please make one for Notes Receivables with Premiums and Discounts? Thanks!
+Tracey Palmer I'm so glad you found it helpful. I will add that to my list of possible new content.
YOUR KNOWLEDGE IS GREAT HELP FOR PEOPLE !!! =)
THANKYOU =)
+YUESIU You're welcome. So glad I could help!
thank u mam really need this i have my mid exams twomaro
+arrain baba you're welcome. Good luck with your exam
This was so helpful, thank you so much! God bless you!
tamz attitude I'm so glad you found the video helpful! Thank you and you're welcome!
Very helpful video! My question is regarding the percentage of sales method. If I have a returns and allowance balance regarding credit sales, what would I be doing with this number? Thanks!
+Sarah Tumler typically, you would use net credit sales in the calculation. Therefore, you should subtract returns and allowances and discounts from credit sales.
you're good...have quiz on BDE, ADA in Intermediate Accounting in 6 days...
+JJ Collins thank you. Good luck with your quiz.
Thank you Kristen for the helpful video :)
+itsamerzz you're welcome! Thanks for commenting. I appreciate it.
thank you so much for sharing us your knowledge, like really the way you discuss it was so easy to understand, thank you thank you so much... btw I'm a student 😊
Mary, I'm so glad I could help you! Thanks for commenting.
this helped me so much. I thank you miss.
theaeroz22 You're welcome. So glad you found the video helpful!
I really wish you were my professor! My current one has her class learn from youtube anyway :'(
I'm sorry. At least you found me. I can be your professor in spirit.
You are AMAZING!
Thank you!
Kristin, thank you so much for this video! so clear and understandable!
Thank you for sharing my video!
Very interesting video...
Can you do a journal entry to show how we would show the 20,000 for the end balance in the allowance for doubtful accounts. Like I have a question that ask for the year-end adjusting entries to provide for the write-offs and to bring the balance of the AFDA account to the required balance as at Dec 31. I understand the write off journal entry is Debit to allowance for doubtful accounts and credit accounts receivable and to show the bad debt amount we do a separate journal entry where we debit bad debt expense and credit allowance for doubtful accounts but is there a seperate journal entry to show the ending balance for the allowance for doubtful accounts that I can see in the T-account?
You don't need to do any other entries. The bad debt/allowance entry is the adjusting entry.
Hi, I don't understand as to why you put the percentage of sales (income sales method) within the T-account and the percentage of credit sales(balance sales) at the end of the T-account. Can you further elaborate? Thank you very much
+Charles Lam The percentage of sales method calculates the amount of bad debt to be recorded. This amount is added to the balance in the allowance account. When you use the percentage of receivables method, you are calculating what the balance in the allowance account should be. That is why it is at the end of the T-account. You must use that balance to calculate the amount of the bad debt that goes into the journal entry.