Скачать или смотреть Financial Accounting Cengage Ch8 Pt1 - Receivables

In this lecture, we begin Chapter 8 of Cengage Financial Accounting by exploring how companies account for uncollectible receivables. We discuss the difference between the direct write-off method and the allowance method for recognizing bad debts and demonstrate how to calculate and record bad debt expense and the allowance for doubtful accounts under each approach.

We also cover two key estimation techniques used with the allowance method—the percent of sales method and the analysis of accounts receivable (aging method)—showing how each affects the income statement and balance sheet. All related journal entries are explained step by step, including the recording of bad debt expense, write-offs, and recoveries.

By the end of this session, you will understand how businesses estimate and record expected credit losses, maintain accurate receivables balances, and comply with the matching principle.

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