Journal Entry Bad Debt Expense

Account Receivable

Introduction Bad debts are unavoidable for companies. Any company that offers credit sales will also have bad debts associated with them. It is because when a company offers credit sales, it accumulates accounts receivables. Accounts receivables are a group of...

Bad Debt Expense: Example, Journal Entry, and More

Account Receivable

What is bad debt? When a company sells products to its customers, it can either collect the payment or allow the customer to pay at a later date. In the case of credit sales, the company must record the sale and the associated receivable balance.      When the...

What are Other Receivables? Meaning, Formula, And Example

Account Receivable

Meaning of Other receivables Other receivables generally come with the headings “Trade receivables and others” in the financial statement of large listed public companies. Other receivables are disclosed under the headings “Current Assets” in the balance sheet of the...

Accounting for Sales Discount: Overview, Example, & Journal Entries

Account Receivable, Financial Accounting

Overview: A Cash or Sales discount is the reduction in the price of a product or service offered to a customer by the seller to pay the due amount within a specified time period.   This is one of the best ways most of the sellers could improve the cash flow for...

Accounting for Sales Return: Journal Entries and Example

Account Receivable, Financial Accounting

What Is Sales Return? Sales return is the return of products or commodities by customers to the seller due to many reasons, but usually within some agreed time period and due to the condition of the product and customer’s satisfaction. This sales return is...

Accounting for Bad Debt Recovery: Overview, Example, Journal Entries

Account Receivable

Introduction: To know the accounting for bad debts recovered, it is necessary to know what bad debts are and how they arise. When a company supplies goods to a customer or another business on credit, the company has to recognize the same amount of receivables in their...