Presentation is loading. Please wait.

Presentation is loading. Please wait.

Irrecoverable Debts & Allowances

Published byDayna Lyons Modified over 6 years ago

Similar presentations

Presentation on theme: "Irrecoverable Debts & Allowances"— Presentation transcript:

1 Irrecoverable Debts & Allowances
Mark Fielding-Pritchard mefielding.com

2 Bad Debts Irrecoverable Provision (prudence concept)
Subsequent receipt mefielding.com

3 Irrecoverable Bad Debts 1.1 P215
Dr Cr On sale Receivables 300 Sales On w/o Bad Debt Expense Note 1.2 A dishonoured cheque is not automatically a w/o mefielding.com

4 Bad Debts Provision Year 1 Co has no opening bad debt provision. Closing receivables are $ Provision required $5000 Dr Cr On creation of provision Bad Debt Expense 5000 Bad Debt Provision Presentation in Balance Sheet Current Assets Receivables 50000 Provision (5000) Reported 45000 mefielding.com

5 Bad Debts Provision Year 2 Co has opening bad debt provision of $5000. Closing receivables are $ Provision required $7500 Dr Cr On increas of provision Bad Debt Expense 2500 Bad Debt Provision Presentation in Balance Sheet Current Assets Receivables 75000 Provision (7500) Reported 67500 mefielding.com

6 Interactive Question 3.1 P220
Receivables Bal b/f 8600 Sales 44000 Cash (49000) W/offs (600) Bal c/f 3000 mefielding.com

7 Irrecoverable Bad Debts P222
Dr Cr On creation of provision Bad Debt Expense 3000 Bad Debt Provision On Payment Cash 2000 Receivables On w/o 1000 mefielding.com

8 Irrecoverable Bad Debts P222
If w/off debt is subsequently paid Dr Cr On receipt of cash Receivables 1000 Bad Debt Expense Cash We restate the receivable to create an audit trail mefielding.com

Download ppt "Irrecoverable Debts & Allowances"

Similar presentations

REVISION LECTURE INTRO TO ACCOUNTING A. Revision Areas Be able to prepare and explain: –trial balance & balance sheet –profit and loss account –cash flow.

REVISION LECTURE INTRO TO ACCOUNTING A. Revision Areas Be able to prepare and explain: –trial balance & balance sheet –profit and loss account –cash flow.
Control Accounts.

Control Accounts.
Bad debts.

Bad debts.
中六級 會計學原理科 Principles of Accounts Branch Accounts.

中六級 會計學原理科 Principles of Accounts Branch Accounts.
AAT Level 2 Sales Ledger Control Accounts.

AAT Level 2 Sales Ledger Control Accounts.
4.3 – Account Balances & Terminology Chapter 4. What is the Balance in the Cash T-Account (Ledger)? 2.

4.3 – Account Balances & Terminology Chapter 4. What is the Balance in the Cash T-Account (Ledger)? 2.
Accounting Practices 501 Chapter 8 Balance Day Adjustments (Bad Debts)

Accounting Practices 501 Chapter 8 Balance Day Adjustments (Bad Debts)
ACCOUNTS RECEIVABLE AMOUNTS OWED TO A BUSINESS DUE TO RENDERING GOODS OR SERVICES ON CREDIT.

ACCOUNTS RECEIVABLE AMOUNTS OWED TO A BUSINESS DUE TO RENDERING GOODS OR SERVICES ON CREDIT.
Bad debts and Provision for Bad debts

Bad debts and Provision for Bad debts
Partnership Dissolution

Partnership Dissolution
2006 Cash Flow Statement Sources of cash: Beginning cash balance Cash receipts from product sales Other sources of cash Total sources of cash Uses of cash:

2006 Cash Flow Statement Sources of cash: Beginning cash balance Cash receipts from product sales Other sources of cash Total sources of cash Uses of cash:
Chapter 3. SALES SALES - Cost of Goods Sold GROSS PROFIT GROSS PROFIT - Operating Expenses OPERATING INCOME (EBIT) OPERATING INCOME (EBIT) - Interest.

Chapter 3. SALES SALES - Cost of Goods Sold GROSS PROFIT GROSS PROFIT - Operating Expenses OPERATING INCOME (EBIT) OPERATING INCOME (EBIT) - Interest.
Credit Sales and Receivables Page 403 to 405. Methods of payment Cash Debit cards Credit cards.

Credit Sales and Receivables Page 403 to 405. Methods of payment Cash Debit cards Credit cards.
BAD DEBTS Chapter 8 p. 407-411. Bad Debts = a term used to describe amounts that cannot be collected The reporting of bad debts is governed by the matching.

BAD DEBTS Chapter 8 p Bad Debts = a term used to describe amounts that cannot be collected The reporting of bad debts is governed by the matching.
Financial Accounting 1 Lecture – 32 Question Following trial balance has been extracted from the books of Arif Traders on June 30, 2002.

Financial Accounting 1 Lecture – 32 Question Following trial balance has been extracted from the books of Arif Traders on June 30, 2002.
AAT Level 3 Accounts Preparation.

AAT Level 3 Accounts Preparation.
Which of the following is included in “Other Receivables”

Which of the following is included in “Other Receivables”
Accounting for Executive Week 4 1/4/2011 (Fri) Lecture 4.

Accounting for Executive Week 4 1/4/2011 (Fri) Lecture 4.
By S.K Chik. Accruals and Deferrals 1) Accrued Expenses (Expenses Owing) –Expenses due and unpaid at the end of the period –Transfer it to the P & L and.

By S.K Chik. Accruals and Deferrals 1) Accrued Expenses (Expenses Owing) –Expenses due and unpaid at the end of the period –Transfer it to the P & L and.
Accounting for Uncollectible Receivables Direct Write-off Method not GAAPnot GAAP used for Tax Purposesused for Tax Purposes Allowance Method is GAAPis.

Accounting for Uncollectible Receivables Direct Write-off Method not GAAPnot GAAP used for Tax Purposesused for Tax Purposes Allowance Method is GAAPis.

Similar presentations

Ads by Google