Explain in details the accounts receivables and bad debts?

Q: How do the percent-of-receivables and aging-of-receivables methods compute bad debts expense?

A: In percent of receivables, bad debt expenses are computed as a percentage of total receivables…

Q: What is the journal entry to record payment of bad debt?

A: When bad debts are recovered cash/bank account shall be debited and bad debts recovery account shall…

Q: How might clustering be used to describe customers who owe money (accounts receivable)

A: Accounts Receivable account shows the list of customers of the business who have amount due to the…

Q: How to prepare bad debts account

A: Bad debts are those account receivables for whom it is estimated that amount due will not be…

Q: The trade and other receivables note will  include the following items.

A: Trade and other receivables means amount to be received from customers on account of credit sales…

Q: All bad debts balances should be removed from accounts receivable balances when they are determined…

A: Accounts receivables can be defined as the payment which is yet to be received by the business in…

Q: Which is better to have? Accounts receivable or notes receivable? And why?

A: Accounting is the process of recording financial transactions that are material to the business. It…

Q: Explain balance sheet approach for estimating bad debts.

A:

Q: placed in the final accounts.

A: Definition:                      Debt that cannot be recovered or collected from a debtor is bad…

Q: Describe about bad debts.

A:

Q: What are some different methods that can be used for customer returns/bad debt? which way do you…

A: Solution: The customer returns can be accounted through two method: One is directly debiting the…

Q: When unspecified receivables are used to secure for a loan, which accounting treatment is required?…

A: Accounts receivables can be used to secure loan.Borrower takes loan on security of his receivables…

Q: Explain the typical way companies account for uncollectible accounts receivable (bad debts).

A: Definition:   Bad debt expense: Bad debt expense is an expense account. The amounts of loss incurred…

Q: Explain the methods of estimating bad debts ?

A: Bad Debt: A loan or outstanding sum that is no longer considered collectable and must be wiped off…

Q: In the deposit function, banks treat interest as income. True False

A: The deposit function function is the creation of deposits through credit extension, either in the…

Q: Describe the approches to estimates bad debts.

A: Definition:   Bad debt expense: Bad debt expense is an expense account. The amount of loss incurred…

Q: Define Allowance for Bad Debts

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: What are some different methods that can be used for customer returns/bad debt?

A: Bad debts they are the expenses that are book by the company for the credit sales made by the…

Q: What is pledging of accounts receivable?

A: Accounts receivable: Accounts receivable is defined as any amount of money payable by…

Q: What is the primary difference between accounts receivable and notes receivable?

A: Receivable: Receivable refers to an amount to be received in future. General classifications of…

Q: The trade and other receivables note will include the following items? A.Debtors control +…

A: Trade and other receivables form a part of current assets and include the amount owed by the…

Q: What is

A: It is uncollectible from the debtors due to bankruptcy, financial problems, or collections by the…

Q: o methods of accounting for bad debts? Wh

A: 1.The direct write-off method 2. allowance method.   In the direct write-off method, an allowance…

Q: Explain the allowance method of accounting for bad debts.

A: Bad debt expense: Bad debt expense is an expense account. The amounts of loss incurred from…

Q: Why might a business prefer a note receivable to an account receivable?

A: An account receivable is a simple promise to repay the seller done by customer which is due as a…

Q: What are some of the ways to estimate bad debts?

A: There are 2 basic methods namely 1. Percentage of sales method 2. Percentage of receivable method…

Q: Allowance for Bad Debts is what kind of account?

A: There are two ways by which bad debt expense is reported by company which is direct method and…

Q: Which of the following items is not classified as an asset?  Accounts receivable Accounts payable…

A: Assets: a. Based on convertibility  :  current assets , Non current assets . b. Based on physical…

Q: What is the difference between accounts receivable and notes receivable?

A: Note receivable is the instrument that represents the amounts of money borrowed or receivables…

Q: What is the theoretical justification of the allowancemethod as contrasted with the direct write-off…

A: Determine the theoretical justification of the allowance method.

Q: allowance for doubtful accounts in accounting for receivables?

A: As per prudence Principle :- always anticipate future losses but never anticipate future profit.

Q: We are currently working on Bad Debt expense and Receivables.  Please see attachement.

A: Revised Journal Entry:

Q: How is the allowance method of accounting for bad debts different from the direct write-off method?…

A: Solution: Introduction: Allowance for Doubtful accounts is a contra asset, that it is related with…

Q: The advantage of relating the bad debt experience to accounts receivable is that this approach

A: There is a convention of conservatism or prudence, it is the policy of playing safe. According to…

Q: What are the stages and processes for resolving bad loans? note: include a reference

A: Bad Loans: When a loan made by a bank cannot be recovered, either partially or fully, it is termed a…

Q: Why can't Accounts Receivable ever have a credit balance? Why can't Accounts Payable ever have a…

A: Whenever goods are sold on account that is cash to be received in future from debtor we get an…

Q: Explain how the accounting for bad debts can be used for earnings management.

A: Bad Debts:   Bad debts refer to the loss of a company, It occurs when a company sold goods or…

Q: How to compute the account receivable Turnover without the net credit sales nor the average account…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: What will the company record for bad debt expense?

A:

Q: Record bad debts using the direct write-off method.

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: What is proovision for bad debts

A: Bad debt means the amount due from debtor but it become bad i.e. it is not possible to recover the…

Q: Please give real life examples and simple definition for this: What is the accounting procedure for…

A: Bad debts: Bad debts are those debts to whom the business has made credit sales on account and now…

Q: which accounting concept is applied when an entry is made for provision for bad debts

A: Introduction:- The act of recording or keeping track of any financial or non-financial action is…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.