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1. Introduction to Accounting(0)

Welcome!
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Types of Accounting
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Business Organization
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Useful Information
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Fundamental Accounting Equation
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The Financial Statements
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Sample Financial Statements - Coca Cola
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2. Transaction Analysis(0)

Journal Entries: Debits and Credits
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Accounting Flow Intuition: BASE Formula
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Journal Entries: Business Formation Example
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Trial Balance
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Classified Balance Sheet Components
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3. Accrual Accounting Concepts(0)

Accrual Accounting vs. Cash Basis Accounting
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Revenue Recognition and Expense Recognition
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Introduction to Adjusting Journal Entries and Prepaid Expenses
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Adjusting Entries: Supplies
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Adjusting Entries: Unearned Revenue
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Adjusting Entries: Accrued Expenses
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Adjusting Entries: Accrued Revenues
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Adjusting Entries: Depreciation
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Summary of Adjusting Entries
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Unadjusted vs Adjusted Trial Balance
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Closing Entries
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Post-Closing Trial Balance
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4. Merchandising Operations(0)

Service Company vs. Merchandising Company
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Net Sales
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Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory
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Perpetual Inventory - Purchases
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Perpetual Inventory - Freight Costs
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Perpetual Inventory - Purchase Discounts
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Perpetual Inventory - Purchasing Summary
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Periodic Inventory - Purchases
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Periodic Inventory - Freight Costs
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Periodic Inventory - Purchase Discounts
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Periodic Inventory - Purchasing Summary
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Single-step Income Statement
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Multi-step Income Statement
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Comprehensive Income
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5. Inventory(0)

Merchandising Company vs. Manufacturing Company
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Physical Inventory Count, Ownership of Goods, and Consigned Goods
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Specific Identification
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Periodic Inventory - FIFO, LIFO, and Average Cost
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Perpetual Inventory - FIFO, LIFO, and Average Cost
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Financial Statement Effects of Inventory Costing Methods
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Lower of Cost or Market
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Inventory Errors
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6. Internal Controls and Reporting Cash(0)

Fraud and the Fraud Triangle
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Sarbanes-Oxley Act
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Five Components of Internal Controls
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Principles of Control Activities
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Limitations of Internal Controls
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Petty Cash
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Bank Reconciliation
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Journal Entries for Bank Reconciliation
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7. Receivables and Investments(0)

Types of Receivables
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Net Accounts Receivable: Direct Write-off Method
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Net Accounts Receivable: Allowance for Doubtful Accounts
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Net Accounts Receivable: Percentage of Sales Method
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Net Accounts Receivable: Aging of Receivables Method
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Notes Receivable
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Introduction to Investments in Securities
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Trading Securities
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Available-for-Sale (AFS) Securities
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Held-to-Maturity (HTM) Securities
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Equity Method
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8. Long Lived Assets(0)

Initial Cost of Long Lived Assets
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Basket (Lump-sum) Purchases
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Ordinary Repairs vs. Capital Improvements
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Depreciation: Straight Line
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Depreciation: Declining Balance
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Depreciation: Units-of-Activity
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Depreciation: Summary of Main Methods
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Depreciation for Partial Years
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Retirement of Plant Assets (No Proceeds)
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Sale of Plant Assets
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Change in Estimate: Depreciation
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Intangible Assets and Amortization
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Natural Resources and Depletion
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Asset Impairments
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Exchange for Similar Assets
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9. Current Liabilities(0)

Types of Liabilities
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Notes Payable
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Payroll and Payroll Taxes
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Sales Tax Payable
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Current Portion of Long Term Debt
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Contingent Liabilities
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Estimated Liabilities: Warranties
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10. Time Value of Money(0)

Time Value of Money Equations
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Using Time Value of Money Tables
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11. Long Term Liabilities(0)

Introduction to Bonds and Bond Characteristics
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Face Value Bonds
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Discount on Bonds
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Premium on Bonds
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Zero Coupon Bonds
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Straight Line Amortization of Bond Premium or Discount
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Effective Interest Amortization of Bond Premium or Discount
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Redeeming Bonds before Maturity
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12. Stockholders' Equity(0)

Characteristics of a Corporation
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Shares Authorized, Issued, and Outstanding
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Issuing Par Value Stock
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Issuing No Par Value Stock
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Issuing Common Stock for Assets or Services
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Retained Earnings
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Retained Earnings: Prior Period Adjustments
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Preferred Stock
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Treasury Stock
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Dividends and Dividend Preferences
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Stock Dividends
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Stock Splits
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13. Statement of Cash Flows(0)

Introduction to the Statement of Cash Flows
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Operating Activities: Indirect Method
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Operating Activities: Direct Method
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Investing Activities
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Financing Activities
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Significant Noncash Activities
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14. Financial Statement Analysis(0)

Horizontal Analysis
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Vertical Analysis
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Common-sized Statements
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Trend Percentages
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Discontinued Operations and Extraordinary Items
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Introduction to Ratios
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Ratios: Earnings Per Share (EPS)
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Ratios: Working Capital and the Current Ratio
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Ratios: Quick (Acid Test) Ratio
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Ratios: Gross Profit Rate
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Ratios: Profit Margin
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Ratios: Quality of Earnings Ratio
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Ratios: Inventory Turnover
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Ratios: Average Days in Inventory
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Ratios: Accounts Receivable (AR) Turnover
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Ratios: Average Collection Period (Days Sales Outstanding)
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Ratios: Return on Assets (ROA)
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Ratios: Total Asset Turnover
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Ratios: Fixed Asset Turnover
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Ratios: Profit Margin x Asset Turnover = Return On Assets
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Ratios: Accounts Payable Turnover
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Ratios: Days Payable Outstanding (DPO)
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Ratios: Times Interest Earned (TIE)
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Ratios: Debt to Asset Ratio
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Ratios: Debt to Equity Ratio
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Ratios: Payout Ratio
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Ratios: Dividend Yield Ratio
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Ratios: Return on Equity (ROE)
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Ratios: DuPont Model for Return on Equity (ROE)
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Ratios: Free Cash Flow
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Ratios: Price-Earnings Ratio (PE Ratio)
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Ratios: Book Value per Share of Common Stock
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Ratios: Cash to Monthly Cash Expenses
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Ratios: Cash Return on Assets
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Ratios: Economic Return from Investing
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Ratios: Capital Acquisition Ratio
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15. GAAP vs IFRS(0)

GAAP vs. IFRS: Introduction
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GAAP vs. IFRS: Classified Balance Sheet
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GAAP vs. IFRS: Recording Differences
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GAAP vs. IFRS: Adjusting Entries
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GAAP vs. IFRS: Merchandising
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GAAP vs. IFRS: Inventory
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GAAP vs. IFRS: Fraud, Internal Controls, and Cash
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GAAP vs. IFRS: Receivables
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GAAP vs. IFRS: Long Lived Assets
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GAAP vs. IFRS: Liabilities
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GAAP vs. IFRS: Stockholders' Equity
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GAAP vs. IFRS: Statement of Cash Flows
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GAAP vs. IFRS: Analysis and Income Statement Presentation
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7. Receivables and Investments

Net Accounts Receivable: Aging of Receivables Method

7. Receivables and Investments

Net Accounts Receivable: Aging of Receivables Method: Videos & Practice Problems

Video Lessons Practice Worksheet

Net Accounts Receivable: Aging of Receivables Method Practice Problems

25 problems

Problem 1Multiple Choice

Which of the following best describes the aging of receivables method for estimating uncollectible accounts?

Problem 2Multiple Choice

Why is the aging of receivables method considered a balance sheet approach?

Problem 3Multiple Choice

A company’s aging schedule shows: \$30,000 current (1% uncollectible), \$15,000 31-60 days (3% uncollectible), \$5,000 over 60 days (10% uncollectible). What is the required ending balance in the allowance for doubtful accounts?

Problem 4Multiple Choice

If a company’s accounts receivable become older on average, what is the likely impact on the estimated allowance for doubtful accounts?

Problem 5Multiple Choice

Given the following data: \$20,000 in 0-30 days (2% uncollectible), \$10,000 in 31-60 days (5% uncollectible), \$5,000 in 61+ days (15% uncollectible), what is the total expected uncollectible amount?

Problem 6Multiple Choice

What is the primary purpose of the allowance for doubtful accounts?

Problem 7Multiple Choice

If the beginning balance in the allowance for doubtful accounts is \$2,000, bad debt expense is \$1,500, and accounts written off are \$800, what is the ending balance?

Problem 8Multiple Choice

A company’s allowance for doubtful accounts has a beginning balance of \$500. The aging schedule indicates an ending balance of \$1,200. During the year, \$300 of accounts were written off. What is the bad debt expense for the year?

Problem 9Multiple Choice

If the calculated bad debt expense for the year is \$2,400, what is the correct journal entry to record this expense?

Problem 10Multiple Choice

A company’s aging schedule shows an ending allowance balance of \$3,000. The beginning balance was \$1,200, and \$500 of accounts were written off. What steps must be taken to determine the bad debt expense?

Problem 11Multiple Choice

Which statement correctly distinguishes the aging of receivables method from the percentage of sales method?

Problem 12Multiple Choice

A company’s aging schedule is as follows: \$40,000 current (2% uncollectible), \$20,000 31-60 days (6% uncollectible), \$10,000 61-90 days (12% uncollectible), \$5,000 over 90 days (25% uncollectible). What is the required ending balance in the allowance for doubtful accounts?

Problem 13Multiple Choice

A company starts the year with an allowance for doubtful accounts of \$1,800. During the year, it writes off \$600 of accounts and calculates an ending balance of \$2,400 from its aging schedule. What is the bad debt expense for the year?

Problem 14Multiple Choice

A company’s aging schedule shows an ending allowance of \$5,000. The beginning balance was \$2,000, and \$1,500 of accounts were written off. The company’s controller claims the bad debt expense is \$3,000. Is this correct?

Problem 15Multiple Choice

Which account is credited when recording bad debt expense using the aging of receivables method?

Problem 16Multiple Choice

After calculating a bad debt expense of \$1,800, which of the following is the correct journal entry?

Problem 17Multiple Choice

If a company’s aging schedule shifts so that more receivables fall into older age categories, what is the expected effect on the allowance for doubtful accounts?

Problem 18Multiple Choice

Which financial statement is most directly affected by the aging of receivables method?

Problem 19Multiple Choice

A company’s aging schedule shows: \$50,000 current (1% uncollectible), \$20,000 31-60 days (4% uncollectible), \$10,000 over 60 days (12% uncollectible). What is the total expected uncollectible amount?

Problem 20Multiple Choice

A company’s allowance for doubtful accounts has a beginning balance of \$2,500. The aging schedule indicates an ending balance of \$4,000. During the year, \$1,200 of accounts were written off. What is the bad debt expense for the year?

Problem 21Multiple Choice

A company’s aging schedule shows an ending allowance of \$6,000. The beginning balance was \$2,500, and \$1,000 of accounts were written off. The accountant claims the bad debt expense is \$3,500. Is this correct?

Problem 22Multiple Choice

Which of the following is NOT a component of the base formula for the allowance for doubtful accounts?

Problem 23Multiple Choice

If a company’s aging schedule shows a significant increase in the percentage of receivables in the oldest age category, what does this suggest about the company’s credit risk?

Problem 24Multiple Choice

A company calculates a bad debt expense of \$5,000 using the aging of receivables method. What is the correct journal entry?

Problem 25Multiple Choice

A company’s aging schedule shows a shift from 10% to 30% of receivables in the over-90-days category. What should management consider regarding its credit policies?

Net Accounts Receivable: Percentage of Sales Method Practice Problems Notes Receivable Practice Problems

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