In this section, we’ll explain the accounting of accounts receivable. By the end of this section, you’ll be able to…
Debt factoring or factoring of receivables is the process where an entity sells its receivables (unpaid invoices) to another entity.…
We know that with receivables, there is always a risk that an entity may not be able to collect the…
Receivables aging analysis is a useful analysis based on the accounts receivable aging report. But what is an accounts receivable…
Contrary to allowance method of recording bad debts, direct write-off method does not require estimation of credit losses. When a…
In this post, we’ll go through an example to understand the mechanism of how to calculate allowance for doubtful debts.…
If an entity has a small number of debtors, expected credit losses can be estimated by considering the historical trends…
Bad debt recovery means getting paid for a receivable that was previously written off. If the receivable was previously written…
A contra account used to record the debts whose recovery is doubtful is called allowance for doubtful debts. The balance…
Credit sales are a common feature of the modern trade. Offering credit sales means that businesses are willing to assume…