MGMT 1A Lecture Notes - Lecture 11: List Of The Shield Episodes, Petty Cash, Office Supplies
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That come up all the time (postage, delivery: replenish fund. 70 cash remaining 28 (missing 2 dollars: replenish again. If it has a dr balance, it is a misc. expense. If it has a cr balance, it is a misc. revenue. Methods of handling bad debts or uncollectible accounts. Collectibility is a major business problem associated with a/r. There are 3 methods: direct write off method (tax, not gaap, allowance method (gaap, not tax) Income statement approach (% of credit sales) a: balance sheet approach (% of a/r) i. ii. Net realizable value: value of the asset less the reasonable costs associated. Allowance account can also be called, allowance for doubtful accounts or of bad debt. This is a contra-asset account to the accounts receivable account. *the 30,000 gets added onto the allowance account because allowance account is a permanent account.
