FA25 - How do you Write Off a Receivable?

Module 5 examines receivables. We learn about the allowance for doubtful accounts and writing off bad debts. We learn two allowance methods: the percentage of sales method (income statement method) and the aging of receivables method (balance sheet method).

[kiley]

I love that you make me laugh while I learn!

[BarbraReimer-sd]

Thank you so much for this. Learning online through just text is so difficult. Thank you so much for providing examples WITH explanations. So very helpful!

[kevinfidler]

Thank you, that was very helpful. I didn't think about the second entry for Cash and A/R.

[PunmasterSTP]

Write off a receivable? More like "The educational value of these videos is unbelievable!" Thanks again, for each and every one of them.

[brandonpartidaguevara]

You are the best thank you so much for taking the time to teach student all around the world all these concepts. I love this and you are helping me understand so much better! You are the best!!!

[yashigupta]

no other teacher could have taught me better than you sir, thank

[HammadKhan-znmw]

You are teaching in Easy and engaging way💗keep it up sir

[andreabaltazar]

U r the best tony my class is so hard for me but u make all easy thanks

[abrahammanzo]

Thank you for the helpful videos. I whacked 🔨 the like button to support the channel!

[noahrocks]

Shout out to my 186th time visiting your channel while working on my capstone

[medina]

Hello
I just subscribed and I enjoy watching your videos. I am currently in college taking principles of accounting classes and I watch your videos for even more help and examples throughout my journey and it helps me a lot to learn complex meanings to even simpler definitions as you describe them !!:)
By any chance, do you have a video explaining stocks and bonds?
Love your videos!

[Error_MC]

What do i have to do when there is already a credit balance to the doubtfull account (a credit balance)

[kimberly]

VERY HELPFUL AND USFUL THANK YOU SO MUCH

[sachin]

Hi Mr.Bell
Beginning A/R = $100, 000
Credit Sales = $500, 000
Cash Collection = $400, 000
5% of Credit sale
5% of Receviable
Find the ending Account Receivable by % sale method
and % Receivable method

thank you in advance

[medhavikosta]

why cant we directly debit cash and credit the allowance account, when the customers decides to pay back after we have written him off.

[piyush_pratik]

Hello Sir,

Great Video!

I have a question though-

Am I correct in saying that the allowance for doubtful accounts is a contra asset account?


Thanks,
Piyush

[Eeriefee]

Succinct and helpful as always. Thank you sir!

[hailey]

if the company was only writing off a portion of the a/r would you do the same except with only the amount of the portion of the a/r being written off?
thank you in advance

[OB_TTV]

hello prof,
after the company pays in sept 22, 2024
could we just say
Debit cash 4, 000
credit allowance 4, 000
because the A\R account is already closed so we just need to close the allowance and this does it
or should i take the long route as u showed in the video ?

[JoshuaKautter]

When Good Sleep finally pays, why can't you debit cash and credit allowance for doubtful accounts? Seems like debiting A/R and crediting allowance, then debiting cash and crediting A/R is an extra step. What am I missing? Wouldn't you almost consider it a cash sale at that point? Revenue has already been accounted for, but it is cash changing hands, so that's why I am asking. Thank you!