Bad Debts & Allowance for Doubtful Accounts | Accounting How To | How to Pass Accounting Class

Bad Debts & Allowance for Doubtful Accounts | Accounting How To is an accounting tutorial explaining how bad debts are accounted for. It explains the direct write off method and the allowance method including the percentage of sales method and the analysis of receivables method.

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This is an accounting tutorial for accounting students, business owners, and bookkeepers to explain accounting basics for beginners. Featuring Terrance the T-Account Rex and accounting educator, Caroline Grimm, this accounting tutorial is part of two playlist series: How to Pass Accounting Class and Accounting Basics for Business Owners.

⏰ Accounting How To Time Stamps:

00:00 Introduction to Bad Debts
00:54 What are Terms?
2:0 Direct Write Off Method
02:18 Types of Contra Accounts
03:52 Matching Principle Revisited
04:25 Introduction to the Allowance Method
04:56 Bad Debt Expense and Allowance for Doubtful (Uncollectible) Accounts
06:49 Journal Entry for Bad Debts using Allowance for Doubtful Accounts
07:44 How to Determine Amount of Estimate
07:58 Introduction to Percent of Sales Method
10:39 Introduction to Analysis (Aging) of Receivables Method
14:34 How to Write Off Debts using the Allowance Method
15:29 Reinstating an Account using the Allowance Method

Download the spreadsheet here:
https://docs.google.com/spreadsheets/...

🎥 Playlists:

🎥 How to Pass Accounting Class Playlist:
https://youtube.com/playlist?list=PLP...

🎥 Accounting Basics for Business Owners
   • Accounting Basics for Business Owners...  

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📚 Get Caroline’s books on Amazon:

Strength in Numbers: Fast and Easy Accounting Basics for Business Owners
https://www.amazon.com/gp/product/B09...

Solving the Cash Flow Puzzle: Practical Solutions for Common Financial Problems in Your Business
https://www.amazon.com/gp/product/B09...

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