Calculating Bad Debt Expense and Allowance for Doubtful Accounts

This video highlights the calculations for Bad Debt Expense and Allowance for Doubtful Accounts using the Income Statement Method (Percentage of Sales) and a Balance Sheet Method (Percentage of Accounts Receivable. T-accounts are used to show the effect of each calculation on Allowance for Doubtful Accounts. Examples are given for both a debit and credit starting balance in Allowance for Doubtful Accounts.

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