Acct 221 1st Edition Lecture 13 Outline of Last Lecture I Inventory Turnover Rate Outline of Current Lecture 1 Uncollectible Accounts a Write Of b Reinstatement Current Lecture Uncollectible Accounts How do you calculate it Two methods of sales income statement method Gross Sales Revenue Net Sales Revenue sales returns purchases and discounts Credit or on Account sales Aging of receivable balances What you calculate is the ending balance in the allowance account Be careful on of sales Could be gross sales net sales or sales on account What you calculate IS your adjustment Write off Decrease allowance debit entry Decrease accounts receivable credit entry Net Realizable stays the same before and after a write off Debiting a contra asset and crediting an asset Reinstate Account Step1 Debit accounts receivable Credit allowance Step 2 These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Debit cash Credit accounts receivable If you want to record cash but not reinstate account Credit allowance Debit cash If you have debit balance in allowance In allowance for uncollectible accounts A credit balance reduces the needed adjustment while a debit balance increases the needed adjustment
View Full Document
Unlocking...