Bad Debts Expense and the Allowance Method for Accounts Receivables (Financial Accounting Series)

In this financial accounting series I start by discussing how accounts receivable is valued at net realizable value and that we will frequently have a contra…
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11 Responses to Bad Debts Expense and the Allowance Method for Accounts Receivables (Financial Accounting Series)

  1. iNinjaNotes says:

    I meant that earnings may be volatile unless you use one of these two methods. Volatile means that earnings will fluctuate between being really bad and then really good. This isn’t helpful because if an investor were to look at the really bad earnings they may be inclined to sell when really the company has just written off (expensed) a bunch of receivables.

    So they sell, then next quarter, earnings are back up. It’s misleading which is why AFDA accounts should be used. That help?

  2. iNinjaNotes says:


  3. iNinjaNotes says:

    The following videos demonstrate the income state and balance sheet methods. Thanks for watching Luiza!

  4. Luiza Eschiletti says:

    It doesn’t explain how to calculate the methods, how to do the estimation. P.S: Your videos are great and very helpful, thank you!

  5. datladystunna says:


  6. Shaqpack609 says:

    What is volatile mean in relation to acounting

  7. Shaqpack609 says:

    How come the direct wrtie off method is not preferred over the estimation method

  8. iNinjaNotes says:

    Well, whatever you didn’t see I can answer on the board or through comments (though since I have received two comments on this I probably will remake it at some point). Though it’s quite readable in anything past 480p.

  9. Sebastian Luca says:

    I think he wasted 12 minutes and I couldn’t see crap

  10. iNinjaNotes says:

    I’m guessing this is an alternate account? If it’s legible on your notebook that’s great. On both my Mac and PC it seems fine to me. I usually don’t use colors that are overly dark because of course…the black-grey background

  11. D. WIN says:

    Actually yesterday i used my tablet to watched ur vids problem with ur blue writing..but through notebook it quit ok..still can read..however thanks for ur reply..;-)

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