ACIS 2115 at Virginia Tech

4. Income Statement vs Balance Sheet Methods

in Topic 7 (Video 4 of 6)
Playback Rate: {{ playbackRates[currentRate].display }}
Under tha Allowance Method of accounting for bad debts, we have two ways of coming up with our estimates: The Income Statement method and the Balance Sheet method. In this video, I'll show you how to remember which is which.

This Video Mentioned Some Formulas

Ending Allowance for Bad Debts = Ending A/R * Estimated %
(Balance Sheet Method)
Bad Debt Expense = Net Credit Sales * Estimated %
(Income Statement Method)

The Rest Of The Videos

1 A/R and Bad Debts Introduction 7:09
2 Direct Method 4:15
3 The Allowance Method 8:56
4 Income Statement vs Balance Sheet Methods
You are here. 		13:14
5 Net Credit Sales 5:20
6 Write Offs and Reinstatements 8:26
Topic 8 →

Topic 7 Practice Problems

Click Here to View All Topic 7 Problems at Once View
1 The Effect of Bad Debt Expense Easy
2 Calculating Bad Debts Moderate
3 The Effect of Uncollectible Accounts Moderate
4 Using the Balance Sheet Method Hard
← Topic 6

Did I miss anything in Topic 7?

What Did I Miss?