This lesson explains how to record bad debts, allowance for doubtful accounts/allowance for credit losses/allowance for bad debts, and allowance for credit losses adjustment in the income statement and balance sheet with information from the pre-adjustment trial balance and additional information given. We look at what to do with the old bad debts and allowance for bad debts and new bad debts and allowance for doubtful debts when asked to post them to the income statement and balance sheet. This is bad debts and allowance for doubtful accounts treatment in final accounts.

Direct Write-Off, Balance Sheet & Income Statement Method of Bad Debt & Allowance for Bad Debts: https://youtu.be/vMaBV3RlmOs

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In this lesson, you will learn how to calculate and record bad debts, provision for bad debts, and how to adjust the provision for bad debts using the balance sheet and income statement methods. You will also learn how to record the allowance for bad debts in the balance sheet using the 2 methods. We also look at the direct write-off method of bad debts why we create an allowance.

Bad Debts & Allowance For Doubtful Accounts (Provision for bad debts) In Financial Statements: https://youtu.be/_cXbTUxIgWk

Check out other straight-forward examples on our channel.

Connect with us:
Email: info@counttuts.com
Our Website: https://Counttuts.com
Our Facebook Page: https://www.facebook.com/Counttuts
Support our Efforts: https://www.patreon.com/Counttuts