1.5 CPE This accounts receivable training covers the proper accounting for receivables and related issues surrounding uncollectible accounts/bad debts are presented in this course. A brief discussion of the direct write-off method will explain why the allowance method is the better approach. The subtle differences between the Balance Sheet approach vs. the Income Statement approach are presented. Additionally, simple interest on notes receivable are calculated and detailed examples are provided.
Course Series
This course is included in the following series:
11 CoursesBack to the Basics: Accounting Fundamentals
- Accounting Review: The Basics of Debits and Credits
- Transaction Analysis, T-Accounts, Debits and Credits, and Trial Balances
- Accounting Review: Overview of Financial Statements; P&L, Balance Sheet, and Cash Flow
- The Accounting Equation and Financial Statements
- Bank Reconciliations, Cash, and Internal Controls
- Accounts Receivable Training: Bad Debts
- Equipment and Depreciation
- Inventory Costing
- Purchase and Sale of Inventory
- The Adjusting Process
- The Closing Process
Learning Objectives
- Define key terms regarding receivables and bad debts
- Discover the sequence of events related to the three primary journal entries related to accounting for bad debts
- Recognize the impact of accounting for bad debts on the related accounts
- Discover how to calculate values used in the Allowance Method of accounting for bad debts
- Discover how to calculate simple interest on notes receivable
Last updated/reviewed: March 18, 2024
63 Reviews (244 ratings)
Reviews
chaya fuhrer
( at Gershon Beigeleisen and Co.)
this is accounting 101. i took this course as an accountant with years of experience because the textbook material does not always work in the real world. i hoped some of the issues i have come across would be addressed. but this turned out to be a course for a college student, not cpe for an experienced accountant.
Anonymous
(Consultant)
Great overview of Accounts Receivable bad debt allowance and the methods used by companies. The supporting materials are worth the course as they walk you through the t accounts and their ending balances for an illustrative example of the different methods.
Maya Walker
(Global Controller at Fourth Enterprises)
Question 2 on test had 2 identical answers. I was hoping for some information on how CECL guidance would impact approaching the allowance methodology. The class focused on basic methodology and debits and credits for this area.
Anonymous
(Snr Accounting Consultant, CPA)
It was good having a great overview on bad debt accounting. Every company has to live the reality that there may be a customer who may not pay their bill. So one needs to know how to handle that accounting wise.
Anonymous
(Accounting Solutions Senior)
I really enjoyed the course. One thing I would prefer is if there were slides for each topic. Overall, it was really great and I appreciated all of the examples that the instructor went through.
Vickie Jackson
(Accounting Manager at NewStar Sourcing and Service)
Nice course showing the difference between the Sales method and the Receivables method for accounting for bad debts. One of the questions had two answers that were exactly the same.
Tim Philips
(Controller at Self)
There are several very poorly written questions on this test. For example q5 says "balance in bad debt expense". You need to put some standard accounting terminology around these questions
Sean Flynn
(Accounting Manager at Rosemawr Management)
Good course on A/R and how to account for bad debts. This course will ensure the attendee has a good understanding on Balance Sheet vs Income Statement impact as well as reversing entries.
Lauren Bauer
(Accounting Manager at Signature Analytics)
This course is a little math heavy, but in my opinion showing the math really helps explain the different methods for calculating and understanding the different methods for bad debt.
Anonymous
(Bookkeeper)
This is a basic high level review of A/R. I like this professor's style. He uses lots of examples and T-accounts. I don't work with AR currently so this was a good refresher.
Mary Oconnor
( at Scribcor Global Lease Administration)
very thorough presentation. While I do prefer the "Live" instruction and examples Erik provides, I would generally prefer the ability to review slides as a reference as well
Lucy Sayles
( at Noonday Collection)
This course was a good basic review of booking bad debt expense. I was hoping, though, for the course to talk about the new current expected credit loss "CECL" requirements.
Anonymous
(Accounting Manager)
Good insight of AR bad debt allowance and the explanation of the different methods used. I do prefer the ability to review the slides as a reference point though.
Lawrence Hirsch
(Controller at Builders design)
This A/R allowance course is a vital basic requirement to understand for just about anyone in the financial world. I am a CPA and I learned something new. Wow.
Anonymous
(Bookkeeper)
This was a good refresher or introductory course. However I wish the instructor would give the answers on the final exam so we can learn from our mistakes.
Anonymous
(Property Accounting Manager)
Although the instructor explained the different methods well. It was hard to read his handwriting. I would have preferred slides to study before the exam.
Anonymous
(Controller)
Great job of showing diff when receivable vs sales method used. Basic stuff, but review was very efficient without adding unnecessary, very basic items.
Anonymous
(VP, Accounting)
This was a good course on accounts receivable and the allowance for doubtful accounts / bad debt expense. I would recommend this as a refresher course.
Anonymous
(Revenue Consultant)
Good refresher course. I like the explanation and the step by step examples. The instructor did a great job of explaining the material.
Anonymous
(Managing Director)
It is reasonable to spend time to complete the course. Thanks for providing the notes which was helpful to understand the concepts.
Kimberly Smith
(A/R Lead, Automotive at Novelis)
Instructor was dry. He was not as excited about the subject matter as some of your other instructors are. Hard to stay engaged.
Richard Dodson
(Consultant at Vaco)
streaming cut off every so often - might have been my connection. Answers c and d on one question were the same.
Tara Landau
(Self employed at self employed)
Hate that you cannot see why your test answers are wrong. How can you learn from this. Pls consider changing.
Anonymous
(None)
Nice review of accounts receivables and notes receivables albeit with the latter employing only simple interest.
Chris Robertson
(Snr Corporate Accountant at NetSuite)
Course materials would be more effective with powerpoint slides. Course duration could be shortened to 1 hour.
Anonymous
(Consultant - Process Specialist)
You'll be able to grasp the basics of accounting. This is a great starter for those new to the accounting world
Trisha Wright(Rinderle)
(Consulting Accountant at EKS&H)
This training covered a good amount of information about allowances for bad debt and Accounts receivables.
Kevin Murray
(Business Partner - Strategic Projects at The Wesson Group)
Course covers a lot of information but the instructor does a good job of illustrating the entries needed.
Shirley Bailey
(Board Member at GMR Protection Resources)
Good review of the basics. Examples require you to think through and do the math to insure understanding.
Anonymous
()
Good course as s refresher for a very hard topic. The only ghunv i eiuld add is s credit expense scenario.
Anonymous
()
Great overall review of bad debt accounting as well as the difference between the different principles.
Anonymous
(Revenue Accountant)
Good review of bad debt, how to calculate and how to record. Excellent practical examples.
Thank you
Anonymous
()
The instructor was very clear in presentation and explained concepts with visual examples. Good class.
Cynthia Quigley
(Accountant at Steinhatchee River Club)
The concepts were well explained and easy to understand. Improved graphics would be nice to have.
Anonymous
()
It was good overall. Question #2 on the Final Exam has 2 of the same answers as choices.
MERSEDEH BASSARI
(Controller at Talitrix llc)
very good session. The material was visually via T accounts and verbally explained.
Julie Zidek-Carter
(Director; Credit & Collections at Yelp)
It seems this was more of a GL training than AR training and was a little long.
Muhammad Baig
(Managing Director at N/A)
A reasonably good course with informative material well-suited for the purpose.
Anonymous
()
Great thorough course. Good to keep slides and examples for future reference
Halina Kovel
(Sr Revenue Accountant at Yelp)
Very useful overview and refresh on BDE and AFDA with very good examples.
Christopher Flowers
( at Environmental Remedies, LLC)
This course was a good overview of methods for accounting for bad debts.
Christopher DiVincenzo
( at Seattle Fish Company, LLC)
Goes over the 2 methods for A/R Bad Debt with examples and explanations.
Anonymous
(Director Net Revenue)
Nice arrangement of examples - Taccounts really help with visualization
Eric Cox
(Senior Accountant at Mondo)
Good beginner to A/R and accounting for allowance for bad debts class.
Anonymous
(Accountant)
Please show graded answers to the exam. Easy to follow along examples.
Rochelle Valdez
(Collections Analyst II at NetSuite)
this course is very helpful though the presentation can be improved.
Charles Elwis
(Insurance Broker at Health Guys)
This review was helpful as I had forgotten much of the material.
Anonymous
(CPA)
Wll presented and made understanding easy with good examples
Anonymous
(Cash Application Analyst II)
This is very good refresher in Accounts Receivable entries.
Anonymous
()
Basic coverage of bad debt expense, good refresher.
Anonymous
(CFO)
Instructor is clear and course easy to follow
Anonymous
(-)
Tough course for an entry level.
Matt Osmundsen
(Category Finance Director at Energizer Holdings, Inc.)
Great course! Very informative.
Anonymous
(Budget & Accounting Manager)
Review of allowance method
Steven Moore
(Certified Management Accountant; CMA at ArdentAccounting)
Great review. Thanks!
James Gately
(CPA at Self-employed)
Great Presentation
Anonymous
(Fiscal Officer)
valued lesson
Anonymous
(-)
Good lesson.
Anonymous
(Sr. Accountant)
Good review
Patrenia McAbee
(Owner at McAbee Consulting)
Good
Anonymous
(Sole Practitioner)
sdff
John Thompson
(CEO at westward mgt)
fine
Scott Saville, CPA
(Global Technical Accounting Policy at Cisco Systems)
!
Prerequisites
Course Complexity: Foundational
No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.
Education Provider Information
Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA
95113
Contact:
For more information regarding this course, including complaint and
cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to
.
Course Questions and Answers(2 Questions)
Erik SlayterAccounting Professor at Cal Poly
About Illumeo
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- Email: info@illumeo.com
- Phone: 408-400-3993
- Adress: 1608 W Campbell
- Av #221, Campbell, CA 95008
© 2024 Illumeo, Inc.
One of these questions has the same answer twice. I think number 2
Tim,
#1 and #2 on the review questions are very similar in that they have the same setup. However, #1 uses the Receivables method (Balance Sheet approach), and #2 uses the Sales method (Income Statement approach).
-Erik