Receivables & The Allowance vs The Direct Write Off Methods
Requirements
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Basic understanding of accounting principles and concepts: Students should have knowledge of fundamental accounting concepts such as debits and credits, the accounting equation, and the basic financial statements.
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Familiarity with financial statements and the accounting equation: Students should be able to analyze financial statements, understand their components (such as assets, liabilities, and equity), and grasp how transactions affect the accounting equation.
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Proficiency in mathematical calculations: Students should be comfortable performing mathematical calculations, including addition, subtraction, multiplication, and division. Basic knowledge of percentages and ratios is also beneficial.
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Knowledge of journal entries and posting: Students should understand the concept of journal entries and how to record them in the appropriate accounts. Knowledge of the chart of accounts and the posting process is essential.
Description
Welcome to our comprehensive course on Accounts Receivable and Notes Receivable in accounting. In this course, we will explore the fundamental concepts and practical applications of managing receivables, including accounts receivable and notes receivable.
We will begin by examining the characteristics of accounts receivable and notes receivable, understanding their role in financial transactions. The accounts receivable cycle will be thoroughly covered, including the journal entries for recording accounts receivable and the use of subsidiary ledgers to track individual customer balances.
A major focus of the course will be on the valuation of accounts receivable. We will delve into two commonly used methods: the allowance method and the direct write-off method. You will gain a comprehensive understanding of these methods and learn how they impact financial statements. We will explore the estimation of bad debt expense under the allowance method, emphasizing the importance of accurate valuation.
In addition, we will discuss the significance of bank reconciliations and internal controls specific to cash, enhancing your knowledge of cash management. We will cover the setup and recording of a petty cash account, ensuring you have a solid grasp of this important aspect of cash control.
The course will also address notes receivable, including their components and the journal entries involved in recording and receiving payment on a note. You will learn how to calculate simple interest, a crucial skill in analyzing and managing note receivable transactions.
To facilitate your learning experience, this course offers a wide range of resources. You will have access to downloadable PDF files for offline reference, Excel practice files to reinforce your skills, multiple-choice and short calculation practice questions to assess your understanding, and engaging discussion questions to foster interactive learning with fellow students.
Rest assured that you will be learning from a highly qualified instructor with extensive experience in accounting and teaching. With certifications such as CPA and CGMA, as well as a Master of Science in Taxation, the instructor possesses the expertise and practical insights necessary to guide you through the complexities of accounts receivable and notes receivable.
Enroll now to gain a comprehensive understanding of receivables, develop valuable skills, and advance your career in accounting.
Who this course is for:
- Aspiring Accountants: Individuals who are pursuing a career in accounting or finance and want to develop a strong understanding of accounting concepts and techniques.
