Income Statement vs Balance Sheet Methods - ACC 300, University of Michigan--Ann Arbor

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Under tha Allowance Method of accounting for bad debts, we have two ways of coming up with our estimates: The Income Statement method and the Balance Sheet method. In this video, I'll show you how to remember which is which.

This Video Mentioned Some Formulas

Ending Allowance for Bad Debts = Ending A/R * Estimated %

(Balance Sheet Method)

Bad Debt Expense = Net Credit Sales * Estimated %

(Income Statement Method)

The Rest Of The Videos

Topic 7 Practice Problems

1	A/R and Bad Debts Introduction	7:09
2	Direct Method	4:15
3	The Allowance Method	8:56
4	Income Statement vs Balance Sheet Methods You are here.	13:14
5	Net Credit Sales	5:20
6	Write Offs and Reinstatements	8:26

	Click Here to View All Topic 7 Problems at Once	View
1	The Effect of Bad Debt Expense	Easy
2	Calculating Bad Debts	Moderate
3	The Effect of Uncollectible Accounts	Moderate
4	Using the Balance Sheet Method	Hard

4. Income Statement vs Balance Sheet Methods

This Video Mentioned Some Formulas

The Rest Of The Videos

Topic 7 Practice Problems

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