In intro accounting, our second method for estimating our bad debts under the allowance method is the Aging of Accounts Receivable. When we make our estimate, that is what we want to end up with in our AFDA. So just make a journal entry that will make that true. #accounting #study #fyp #unitok #educational

In intro accounting, we need to book bad debt expense entries to recognize that some customers may not pay us when they make purchases on account. This helps us follow our expense matching principle and matches the bad debt expense to the period in which we generated revenues. The percentage of credit sales method is one way of calculating our bad debt expense. Remember we just put our estimate straight into our journal entry for this one (but we don’t do that when we use the aging of A/R method

How to Pay Down Debt: Strategies for Debt Payoff