Lect6_08 - Accounts Receivable Bad Debt Expense $xx...

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Receivables and Revenue Recognition I. Allowances for Uncollectible Accounts - % of Sales - Aging
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Allowances for Uncollectible Accounts Not all Sales on Account are Expected to be Collected Therefore: 1. Sales Revenue overstates expected collections, and 2. Accounts Receivable overstates expected collections. Adjust Sales and Receivables for Expected Uncollectibles (Note an adjusting entry at end of the period.) % of Sales - use past experience to estimate % uncollectible. - make adjusting entry to reduce Sales Revenue and
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Unformatted text preview: Accounts Receivable Bad Debt Expense $xx Allowance for Uncollectibles(XA) $xx Allowances for Uncollectible Accounts Contd. Adjust Sales and Receivables for Expected Uncollectibles Aging of Accounts Receivable- periodically examine outstanding (delinquent) accounts and revise estimates, making any necessary adjustment: Bad Debt Expense $xx Allowance for Uncollectibles(XA) $xx When it is Determined that a Specific Account is Uncollectible Allowance for Uncollectibles(XA) $xx Account Receivable $xx...
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This note was uploaded on 09/18/2008 for the course ACCT 2050 taught by Professor Sanjay during the Spring '08 term at Minnesota.

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Lect6_08 - Accounts Receivable Bad Debt Expense $xx...

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