ACC 300 at University of Michigan--Ann Arbor













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acc300umich.com Formula Sheet
Total Credit Sales
– Sales Returns and Allowances
– Sales Discounts
Net Credit Sales
Ending Allowance for Bad Debts = Ending A/R * Estimated %
(Balance Sheet Method)
Bad Debt Expense = Net Credit Sales * Estimated %
(Income Statement Method)
Accounts Receivable
– Allowance for Bad Debts (or Allowance for Uncollectible Accounts)
Net Realizable Value (or Net Accounts Receivable)