Receivables & The Allowance vs The Direct Write Off Methods
3.8 (16 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
10,020 students enrolled

Receivables & The Allowance vs The Direct Write Off Methods

Accounts receivable valuation, allowance method, direct write off method, valuation of notes receivable, internist calc
3.8 (16 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
10,020 students enrolled
Last updated 6/2019
English
English [Auto-generated]
Current price: $119.99 Original price: $199.99 Discount: 40% off
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This course includes
  • 14 hours on-demand video
  • 23 downloadable resources
  • Full lifetime access
  • Access on mobile and TV
  • Assignments
  • Certificate of Completion
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What you'll learn
  • Accounts receivable and note receivable characteristics
  • Accounts Receivable Cycle
  • Accounts Receivable Subsidiary Ledger
  • Accounts Receivable Valuation
  • Allowance For Doubtful Accounts Method of Accounts Receivable
  • Direct Write Off Method of Accounts Receivable
  • How to Estimate Bad Debt Expense Under the Allowance Method
  • Components of a Note Receivable
  • How to Calculate Simple Interest
  • How to Record A Note Receivable
Requirements
  • We should have a basic understanding of financial accounting and debits and credits
Description

We will discuss receivables, focusing on accounts receivable and notes receivable, reviewing the accounts receivable cycle, the journal entries for recording accounts receivable, and related subsidiary ledgers. 

We will discuss bad debt and valuing of accounts receivable using two methods, the allowance method and the direct write off method. The accounts receivable account represents money owed to the company but there will be times when the company cannot collect on the account receivables. 

Under the direct write off method, we write off the accounts receivable as we determine they are not collectible. The direct write off method does not do a good job of representing the accounts receivable account's true value and does not do a good job of conforming to the matching principle, matching up expenses with the related revenue it was used to generate. 

The allowance method does a better job of valuing accounts receivable and conforming to the matching principle and is the method preferred. The allowance method is more complex, however, and requires the use of estimates. 

We will also discuss notes receivable, the journal entry for recording notes receivable, and for receiving payment on a note receivable. We will cover detailed methods for calculating simple interest. 

In addition to instructional video, this course will include downloadable

•    Downloadable PDF Files

•    Excel Practice Files

•    Multiple Choice Practice Questions

•    Short Calculation Practice Questions

•    Discussion Questions

The PDF files allow us to download reference information we can use offline and as a guide to help us work through the material.

Excel practice files will be preformatted so that we can focus on the adjusting process and learning some of the basics of Excel, like addition, subtraction, and cell relationships.

Multiple choice example question helps us improve our test-taking skills by reducing the information into the size and format of multiple choice questions and discussing how to approach these questions.

Short calculation questions help us reduce problems that have some calculation down to a short format that could be used in multiple choice questions.

Discussion Question will provide an opportunity to discuss these topics with the instructor and other students, a process many students find very helpful because it allows us to see the topic from different viewpoints.

Who will we be learning from?

You will be learning from somebody who has technical experience in accounting concepts and in accounting software like QuickBooks, as well as experience teaching and putting together curriculum.

You will be learning from somebody who is a:

•    CPA – Certified Public Accountant

•    CGMA – Chartered Global Management Accountant

•    Master of Science in Taxation

•    CPS – Certifies Post-Secondary Instructor

•    Curriculum Development Export

As a practicing CPA the instructor has worked with many technical accounting issues and helped work through them and discuss them with clients of all levels.

As a CPS and professor, the instructor has taught many accounting classes and worked with many students in the fields of accounting, business, and business applications.

The instructor also has a lot of experience designing courses and learning how students learn best and how to help students achieve their objectives. Experience designing technical courses has also benefit in being able to design a course in a logical fashion and deal with problems related to technical topics and the use of software like QuickBooks Pro. 

Content Includes: 

  • Account receivable and note receivable characteristics
  • Accounts receivable cycle
  • Accounts receivable subsidiary ledger
  • Accounts receivable valuation
  • Allowance for doubtful accounts method of accounts receivable
  • Direct write off method of accounts receivable
  • How to estimate bad debt expense under the allowance method
  • Components of a note receivable 
  • How to calculate simple interest
  • How to record a note receivable
Who this course is for:
  • Accounting students
  • Business owner
  • Anyone who whats to learn accounting
Course content
Expand all 76 lectures 14:13:04
+ Accounts Receivable Journal Entries
9 lectures 01:15:49
2 Accounts Receivable Journal Entries
00:48
PDF - 20 Lecture 4 Business transactions involving accounts receivable D & D
00:08
Excel Download
00:05
Prob 5 Debits and Credits Accounts Receivable
29:21
Excel Download
00:05
Prob 8 General Ledger Accounts Receivable
24:47
10 Multiple Choice Questions - Accounts Receivable
10:17
Quick Comic Break
00:13
+ Accounts Receivable Subsidiary Ledger
8 lectures 41:30
3 Accounts Receivable Subsidiary Ledger
00:34
PDF - 30 AR subsidiary ledgers D & D new
00:08
Accounts Receivable AR Subsidiary Ledger Explained
09:00
Excel Download
00:05
700.10 Accounts Receivable Subsidiary Ledger 700 Part 1-Accounting instructions-
12:31
700.20 Accounts Receivable Subsidiary Ledger 700 Part 2-Accounting instructions
11:58
Describe the accounts receivable cycle, subsidiary ledgers, & allowance method
Discussion Question 1
1 question
20 Multiple Choice Questions - Accounts Receivable
06:59
Quick Comic Break
00:15
+ Direct Write Off Method
7 lectures 01:02:59
4 Direct Write Off Method
00:48
PDF - 40 Direct Write Off Method
00:08
Direct Write Off Method
19:57
Excel Download
00:05
Worksheet Direct Write Off Method
34:36
Discuss what a note receivable is and how to calculate interest due.
Discussion Question 2
1 question
30 Multiple Choice Questions - Accounts Receivable
07:12
Quick Comic Break
00:13
+ Allowance Method
9 lectures 01:24:07
5 Allowance Method
01:26
PDF - 50 Allowance Method D & D
00:08
Allowance Method Accounts Receivable
30:37
Excel Download
00:05
900.10 Allowance Method 900 Part 1-Accounting%2C Financial
15:31
900.20 Allowance Method 900 Part 2-Accounting%2C Financial
15:44
900.30 Allowance Method 900 Part 3-Accounting%2C Financial
11:23
Compare and contrast the direct write off method and allowance method
Discussion Question 3
1 question
40 Multiple Choice Questions - Accounts Receivable
09:01
Quick Comic Break
00:12
+ Allowance Method Compared to The Direct Write Off Method
5 lectures 32:10
6 Allowance Method Compared to The Direct Write Off Method
01:15
PDF - 60 Allowance & Direct Writ Off Method Comparison
00:08
Allowance Method VS Direct Write Off Method
20:37
Compare and contrast the methods commonly used to calculate bad debt and allowance for doubtful accounts.
Discussion Question 4
1 question
50 Multiple Choice Questions - Accounts Receivable
09:58
Quick Comic Break
00:12
+ Allowance for Doubtful Accounts Calculation
10 lectures 01:03:12
7 Allowance for Doubtful Accounts Calculation
01:04
PDF - 70 Allowance AR vs Sales method
00:08
Allowance Method % Accounts Receivable vs % Sales Method
19:00
Excel Download
00:05
Worksheet % of Accounts Receivable Aging Method
14:34
Excel Download
00:05
Worksheet - % of Sales Method - Allowance for Doubtful Accounts
10:24
Describe the journal entry for recording a note receivable and the effect on the accounting equation.
Discussion Question 5
1 question
Short Calculation 1
11:28
60 Multiple Choice Questions - Accounts Receivable
06:11
Quick Comic Break
00:13
+ Notes Receivables
15 lectures 03:03:04
8 Notes Receivable
01:39
PDF - 80 Note Receivable
00:08
Notes Receivable
24:26
PDF - 90 Interest Calculations
00:08
Interest Calculations
20:18
Excel Download
00:05
Worksheet - Simple Interest
18:48
100 Note Receivable Example
00:08
Note Receivable Example
20:24
Excel Download
00:05
Worksheet 1 - Notes Receivable
52:50
Worksheet 2 - Notes Receivable
26:58
Describe the difference between an account receivable and note receivable.
Discussion Question 6
1 question
Short Calculation 2
09:14
70 Multiple Choice Questions - Accounts Receivable
07:40
Quick Comic Break
00:13
+ Comprehensive Problem
9 lectures 03:24:51
9 Comprehensive Problem
01:29
Excel Download
00:05
Comprehensive Problem Special Journals Part 1
27:50
Comprehensive Problem Special Journals Part 2
25:02
Comprehensive Problem Special Journals Part 3
30:37
Comprehensive Problem Special Journals Part 4
31:26
Comprehensive Problem Special Journals Part 5 Adjusting Entries
27:55
Comprehensive Problem Special Journals Part 6 Financial Statements
43:32
Comprehensive Problem Special Journals Part 7 Closing Process
16:55