Accounting for Bad Debts/Doubtful Accounts - Allowance Method
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- เผยแพร่เมื่อ 7 ม.ค. 2025
- Learn accounting for bad debts using the allowance method.
Textbook used: 2011 Edition Financial Accounting Volume 1 by Mr. Conrado T. Valix, Mr. Jose F. Peralta and Mr. Christian Aris M. Valix
#baddebts #doubtfulaccounts #allowancemethod
𝗥𝗲𝘃𝗶𝗲𝘄 𝗼𝗳 𝗘𝗦𝗧𝗜𝗠𝗔𝗧𝗜𝗢𝗡 𝗢𝗙 𝗗𝗢𝗨𝗕𝗧𝗙𝗨𝗟 𝗔𝗖𝗖𝗢𝗨𝗡𝗧𝗦 🫶
th-cam.com/video/zM4HtY5D11w/w-d-xo.html
His teaching is The Best, So Easy to understand, And I think He is the Best Filipino Teacher here in TH-cam.. Thanks for sharing your Knowledge, May God bless you.. Your a big help to Us.. 😁😊😊
Thanks! Jonel! We are happy to help! More videos to be uploaded soon to support every aspiring accountants.
@@FilipinoAccountingTutorial Greatful for this Helpful contents of yours ♥️😊
@@FilipinoAccountingTutorial Sana po manotice nyo yong question ko 🤞
real talk this channel makes my life easier. I mean of course may mga complex problems pa dito but the important thing is may foundation ka sa basic or sa mga madadali pang examples/problems. Tapos from the shallow one, yung deeper understanding mo will follow. Sobrang thank you and more power. This channel deserves more subscribers 💗
Hi za! Thanks for watching our videos! Agree kami dito. Deeper understanding will follow pag marunong na sa basics, provided na nagpapractice mag-solve ng problems. Masaya kami makatulong!
thank you so much po dito,studyante ako ng amaoed ngayon(BSA) so bale self study ginagawa namin mahirap lalo ikaw studyante,sarili mu pa magiging teacher buti nakita ko to ang laking tulong po ninyo..
You're welcome Elly! We're glad it helped! Stay safe!
This video is incredibly helpful because some of the students, like myself, are still taking online classes and have very little background in accounting. Thank you po.
You're welcome, y care 🙂 glad the video is helpful ♥️ mag aral nang mabuti ♥️
thankyou po! mas nagegets ko pa po mga vids nyo kasi parang word by word po pagtuturo nyo! Godbless po!
You're welcome, Michaella 🙂 Hope this video will help you. God bless 🙂
Napakalaking tulong po sa akin tong video na ito mas naiintindihan ko pa po dito kaysa sa lecture sa klase namin maraming salamaatt
Walang anuman Ginalyn. Mag aral nang mabuti. Palagi making sa lecture ng teacher nyo 💛
thank you sir. ang laking tulong nyo po. ung teacher kasi namin puro pagawa lang ng activity di naman natuturo. :< sobrang thank you po
You're welcome Paulo. Mag aral ng mabuti 💛
So easy to understand your way of teaching. Sana ganyan din prof ko.
Masaya kaming makatulong sa iyong pag-aaral 💛
I've just discovered your channel now and it was a perfect timing! Final exam na namin for FAR sa tuesday and I was really worried kasi hindi naman ako masyadong nag-eexcel sa subject no matter how hard I try. Sana katulad niyo ang maging teacher namin next sem dahil ang effective ng teaching techniques niyo! 😭 Thank you so much!
Hi Trixie! Goodluck sa exam and thanks din for considering our videos as part of your study!
@@FilipinoAccountingTutorial thank you po and God bless!
Thank you so much po at least na rereview ko sarili ko through your videos po. Also wanted to highlighy lang po ata.
For the "Net Sales" baka malito yung iba gaya ko dati😅. Ang ibig sabihin po ng net sales dun sa pagkuha ng doubtful account (last part) is yung credit sales. Kasi if ever may ibinigay na cash sales sa problem, needed yun e minus if na include sa problem baka masali niyo gaya ko dati🤣🤣 dapat yung net credit sales lang guys. Pero if silent gaya niyang nasa given ni sir edi choks lang.
Thank you too for this comment Fans&IdolsRelationship. This is correct. 💛
@@FilipinoAccountingTutorial Thank you sir. Keep it up po. Malapit ko na din matapos lahat ng videos niyo!
I am from India. Very neat explanation. Understood easily. Thanks
We are glad to help you in your study. Stay safe! ♥️
thank u sir! your tutorials always helps me a lot! You made it easier to understand. salute to you sir!
Wow nkkatuwa nman ang comment n yan. Aral mabuti and keep safe ☺️
Thank you so much! Report pa naman namin ito today at medyo may kalabuan XD salamat sa pagpapaintindi
You're welcome April! Pati pala sa accounting may reporting na approach na.
Thank you so much for this sir! I'm still having a hard time answering the problems related to accounts receivable,bad debts, etc after reading our reference kaya tinry ko yung videos nyo
Hi DSP! Good to know na you are answering problems about jan kahit mahirap. You're welcome!
hi po.. thank you po sa mga video niyo.. nakakatulong po talga sken mga video nio sana lahat ng topic may tutorial video kayo na gawin
Yes Josiephine, madidiscuss din lahat ng yan.
Wag po kayo mawawala pls sobrang galing niyo
Sure, leyds. Ill upload more videos soon 🫶 Mag aral nang mabuti and hope this video lesson will help you ❤️
Good eveing 🥰 Thank you for proving us this kind on content mas madali po intindihin 😫🥺 Thank you po for us accounting student malaking tulong po ito. Thank you sir ❤️
You're welcome D.O. Masaya kami makatulong. Stay safe! 💓
YOUR TUTORIAL VIDEOS ARE HELPING ME A LOT! ❤️❤️ looking forward for more tutorial videos! 😋
More videos soon! We are happy to help!
salamat sa channel mo kase ang galing mo talaga, idol ta ka ❤️
Walang anuman, Error 404. We hope this video will help you 🙂
Hello po, I hope meron din po sa Cost accounting. Thank you po sobrang nakatulong talaga yung channel nyo ❤️
Hello Vince! Videos about cost accounting soon! Incoming na. We are happy to help.
Thank You po for this Tutorial Video 👏 more topic pa po Sir 🤗
You're welcome Armore!
Thank you for sharing your knowledge with us sir, very helpful especially for a student like me taking online classes May God bless you!
You're welcome, jera. We're happy it is helpful. Mag aral nang mabuti
Salamat po sobrang laking tulong
Walang anuman Brazen!
thank you so muuuch Sir! big help po! ang galing nyo mag explain.
You're welcome Romero! Mag-aral ng mabuti and keep safe! 💛
Salamat po 😊 I always watch your videos
welcome Roxanne!
Thank you po sir!! 💛💛💛
welcome Glaiza ☺️
sobrang salamat po dito 😭💗
Welcome
thank you so much sir! i understand a lot from you more than my college professor ^^
You're welcome, huang. Mag aral nang mabuti ❤️
Thank you so much, sir. It helps me a lot. Keep on making accounting tutorials 😊
You're welcome Anna!
Hi sir salamat po sa tutorial I hope pati yung cost accounting mag Simula sana sa umpisa .
Sure Wea. Winowork out din namin ito.
preparing for midterms!
Great help! Thank you so much!!!
Welcome Jasmine Mae! Keep safe!
Salamat po malaki po ang tulong nyo saakin❤
Walang anuman Joshua!
Salamat ng marami sir!
Welcome Bj!
Hello po! I have a question po sa aging of accounts receivables, sa 21:00. Given po ba yung amounts na 500k, 300k, etc. or may computation po? Thank you!
Sana nakita ko nung nagaaral pa ko. mas clear!!! haha. thank you po!!!
You're welcome Ruffa! 👍
Kakatanong lang po nito ni Ma'am sa revicitation kahit di pa niya tinuro Hahahaha. Sayang di ko po ito napanood. Sinusunod sunod ko po kasing panoorin ung Basic Accounting playlist ^-^
Mag aral ng mabuti Alinsky 💚
Alam ko na ang normal balance ng expense ay Debit since contra equity siya, pero bakit nasa credit side ang Debit expense doon sa Allowance for Doubtful Accounts? 10:40
Love this man
Thanks IC!
salamat po masyado pabagsak na talaga ako hahaha buti nakita ko to.
We're happy to help you Gamaliel. Kaya mo yan!
Thank you po so much!!!!!
You're welcome, Ara 🙂
thank u po. sobraaa
Welcome Eurusx Stark!
Provision for Depreciation po sir i sunod nyo :))) salamat po!
Hi Faridah! Sure. Malapit na ang depreciation. You're welcome.
Hello po malaking tulong po saamin ito sana po magawan niyo rin ng tutorials yung loans receivables
Hi Sadsad! Sure. madami na din nagrerequest ng NR at LR.
Thank you
You're welcome Faridah.
hello sir may i ask if you have a video about the direct write off method for bad debts?
HELLO PO, loans receivable poana sa next video, at tsaka po yung interpolation po, diko ho magets yun eh, thank youuu po!
Hi Eam! consider namin itong suggestion mo.
SIR what if the uncollectible account total exceeded the total allowance for uncollectible accounts
Thank you🤗
thank you so much !
You're welcome, Elaine. Hope this video will help you 🙂
Why did you add AFDA column?
Salamat po
Walang anuman, Christine 🙂
Thank u po
Thank You Sir. Question lang po, ano po implication if debit yung balance ng allowance for bad debts
Sobra Yung ni write off vs dun sa provision
Salamat po
Ruben calawan T. jr
nice thanks Po
Welcome 🙂
Pahelp naman po sa problem na to please, thank you po!
Given that the balance in the Allowance for Doubtful Accounts is $300 credit, prepare adjusting entries for bad debts based on the following assumptions:
a. Bad debts are to be 5% of net credit sales, or $700.
b. Bad debts should be $600 on the basis of the aging of Accounts Receivable.
Meron po bang Direct writeoff method?
Thanks sir, baka pd Po pa upload Ng consolidation, share capital at taxes. Thanks Po
Thx po 🙇♀️
You're welcome, ikuyuki 🙂 mag aral nang mabuti ♥️
@@FilipinoAccountingTutorial hello po ask ko lang pano po pag walang nilagay na percent for bad debts po tas ang nahandito lang ay AFDA at hinahanap Bad dept exp. po?
Sir paki discuss po yong allowance method and direct write off method
Hello po. Ask ko lang po bakit di dineduct yung sales return for net sales? Thank you po
Thank you so much po dito sir.
Ask ko lang rin po kung meron kayong tutorial about sa discussion po sa mga contra-sales accounts? Baka kasi hindi ko lang po nakita.
Thank you po.
You're welcome, dian. You can watch our video with the topic, journalizing sales and purchases transactions. May mga lectures kami dun about contra sales and contra purchases accounts. Hope it helps.
@@FilipinoAccountingTutorial Maraming salamat po sir!
Walang anuman, dian. Mag aral nang mabuti 🙂
@@FilipinoAccountingTutorial Opo Sir! 💜
Hii poo! Incoming college student po na kukuha ng course BSA. May recommend po ba kayo na book for/like these tutorials po. I would love to have a book to review and mga tutorials videos niyo po. Sobrang helpful po talaga ng mga tutorials niyo sakin na medyo di magets pagwalang nageexplain but at the same time need ng book for practices
Hi Misheru! Thanks for watching. Nakalagay sa description ng videos namin ang textbook, and we recommend those books para sa mga newbie sa accounting. Masaya kami makatulong.
Hays hrm student na nag bsa . Willing to learn pero bat ganun sakit sa head . Haha
Hi Maryrose! Kaya mo yan.
Required:
1% of credit sales method
Given:
Sales (80% on account) 3,000,000
Dapat yung A/R is
Accounts receivable
(3,000,000×80%) 2,400,000
Using the percent of sales method
(Net sales × rate = DA expense)
[Yung pagkakaintindi ko]
600,000 × 1% = 6,000
Pero yung nakalagay sa book (IA 1 by Ocampo and Ballada, pg 534)
Doubtful Account Expense
(2,400,000×1%) 24,000
Hindi ko po gets paano naging ganun. Please help po😢
what if mas mababa ang AFDA end sa beginning , ano po entry
Sir question po. Bakit po kapag sa Aging at Percentage total na po agad sa sa ending balance pero kapag sa sales percentage ina-add pa po sa beggining balance?
Pa request po for Home Office and Branch. Thank you po
Hi Christian! Sure consider namin ito.
Hello po! hindi ko makita yung Matching Principle na video mo sir. yung inimention mo.
Hello po sana afar din po hehehe lalo na home office branch and consolidation po 😁
Yes allysagel.. soon.
Thank you po 🤗
Hello po. Sir, pano po kaya ang account ay notes receivable, okay lang po? Sana po masagot thank you po
Pwede rin pp ba matanong kung bat po nagkakaroon ng allowance for bad debts sa beginning balance po? Pasensya na po dami kop pong tanong
Sir may I ask po anong ibig sabihin kapag nakadebit ang allowance for doubtful accounts?
Hiiii please LCNRV thank you so much ❤️❤️
Noted ito.
hello po, pwede po ba isa pa pong example video na tungkol dito? thank youuu!!!
Given po ba yung 10k na Allowance for Doubtful accounts? or kinokompute po siya? How to compute po if ever needed icompute? Thanks po.
Bakit po nagkakaroon ng mga debit/credit balances before adjustment?
Hi po, question lng po, bakit hindi kasali ang sales return sa pagkuha ng NRV ng AR? wala bang effect sa AR? tia
Depende sa Sales return.
Sir please isunod nyo po agad yung Notes receivable.. sana po magawa nyo before Huwebes Shout out kay Luisito, Dan Clarence, Kenneth at kay Joshua.
Hi Linard. We are uploading videos on a weekend basis or pag may free time pag holidays. Susunod na ang Notes receivable but that would be after huwebes na. Goodluck!
@@FilipinoAccountingTutorial Salamat sir
Go michael hahahahahaha!!!!
Batninam lasi. Hahahaha
hi po paano po pag mag recovered tas uncollectible accounts?
Ano pong ibigsabihin nang Term 2/10?
Parehas lang siya sa uncollectible accounts right sa bad debts di po ba?
meron pong direct writeoff method?
Sana po mapansin nyo to Sir pero paano po pag % of collectible yong given?
I know po narinig ko po dito sa discussion na % of uncollectible po yon lagi pero collectible po talaga yong given samin eh. Bali i-minus ko nalang po ba sa 100 yong given % collectible para makuha yong uncollectible? Thank you po 🥺
Your analysis is correct, eeynnjjeell. 100 less percent collectible = percent uncollectible 🙂
Good Evening po. Notes receivable po sana :( Thanks in advance 😍
Hi Jocelle!'Noted..
Hello po sir. Pwede po mag ask? Ano po pinagkaiba ng past due tsaka days old po? San po ba sila nagsisimula sa counting? Thank you
Past due means due accounts (accounts na beyond due date) na hindi pa settled. So probably, other term lang for past due ang "days old".
Counting is exclude first day and include last day. Hope it helps, kaye! 🙂
Thank you sir ❤
You're welcome, Kaye! Mag aral nang mabuti. 🙂
thank you poooooo
You're welcome Rizeth 💛
how to compute yung estimated uncollectible, sir?
Hi dummy. Depende. Pero basically, AR * estimated uncollectible rate ng AR.
@@FilipinoAccountingTutorial ty po
May tanong po ako, sana may mag respond po.. What if po may beginning balance ang allowance for bad debts? paano po mangayari sa Adj E? or ending balance po
As is lang, iconsider mo ung beginning balance then perform mo yung computation na ginawa sa video. Hope it helps! 💛
paano po nagcome up as 10% of the A/R yung AFDA? given po ba or constant?
Accounting estimate yan. Given yan. Most of the time constant, pero pwede din yan magbago depende sa experiences ng business.
@@FilipinoAccountingTutorial given din ho ba mga estimated uncollectibles, or icocompute po siya?
@@dummyaccount1574 most likely given :)
Sir, bali yung sa Balance sheet approach is the balance you’ll get is the required afda, tama po ba? While the percentage of sales approach is yung makukuhang DAE sa pagtimes ng net sales sa % is yun yung i aadd sa existing (if meron) na balance sa AFDA. Can u please further explain why po ganun? Thanks in advance!! 🧡
Can u please further explain why po ganun? Thanks in advance!! 🧡
Ok sige sure, Random. This is a good question.
Balance sheet approach muna:
Ang allowance for doubtful accounts ay account for estimated amounts na hindi macocollect sa A/R. Therefore to compute required balance AFDA at year end, you can based it on A/R balance at the end of the period by mutiplying the % and the balance of A/R at year end. Kaya yan yung required AFDA at year end.
Percentage of sales approach / Income statement approach:
Ito naman ay nakabased sa net sales of the current period. Net sales x %. Kaya yan DAE (and not required AFDA) because nakabased lng ito sa net sales of the current period. Yung mga DAE ng nakaraang acctg periods na nakabased sa net sales ng past acctg period ay nai-reflect na sa beginning balance ng AFDA.
We hope this explanation will help you in better understanding ng topic. Mag aral nang mabuti ❤️
tanong lang po Sir, pano po na compute yung column ng Amount at yung column po ng Estimated Uncollectible or Percent Uncollectible?
Thankyou in advance Sir❤️
Hello Melai. Parehas silang given sa problem. Hope this will help.
@@FilipinoAccountingTutorial Thankyou po Sir❤️
Sir kay mag 1year na sana maka reply ka baka hindi ako makatulog kaka isip eh hehe, general o kaya po ginagamit napo kaya ng lahat yung formula na percentage nayan para ma compute yung allowance for doubtful accounts? SANA PO MASAGOT
Hello Bikoy!
Generally, lahat ng formula ginagamit sa actual. Pero based sa experience ko, kalimitan yung Aging of Receivables ang ginagamit. Hope it helps! 🙂
Sir yung estimated uncollectiblepo ba ay purely estimate lng po or may computation po na ginagawa para makuha yung mga precentage na yun? Salamat po dun lng po talaga ko nahihirapan sa estimation
Hello jovjk. Actually both. Estimate and computation.
Estimate - for example according to your research on comparing business with similar ang operations to your business, you found out na average 5% ang estimated uncollectible accounts nila at year end.
Computation- kunware on your 1st year of operations, 5% ng AR hindi nacollect. You will use 5% rate na for 2nd year.
@@FilipinoAccountingTutorial sir thank you po, sobrang laking tulong po ng channel nyo 🥰🥰🥰🥰
❤
Walang write off method?
Yes wala pa sa ngayon
paano po makuha yong estomited uncollectible percent ?
Hello Princess. Most of the time for problem-solving purposes, give yung rate na yan 🙂 In actual practice, yung rate na nakaestablish ay based sa past experiences ng business regarding sa collection of accounts receivable. Hope it helps.
Given naba yan sa problem yang percent of uncollectible?
At yang amount na rin? (7:54)
Oo
wala po yung isa pong method? yung direct writeoff po?
Hello. Yes, wala pa sya sa ngayon 👍
@@FilipinoAccountingTutorial may closing entries na po ba na tutorial vid? hihi thanks po sa mga videos mo po, sobrang helpful po
Thanks too d'anz! We're glad na nakatulong 👍
Yes, may closing entries na tutorial na kami dito 👍