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I n t h i s s e c t i o n w e w i l l c o v e r :uraccounted4accounting.com
Direct vs Indirect
I n t h i s s e c t i o n w e w i l l c o v e r :
Direct vs IndirectSales - A/R - Cash In
uraccounted4accounting.com
I n t h i s s e c t i o n w e w i l l c o v e r :
Direct vs IndirectSales - A/R - Cash InAllowance forDoubtful Accounts
uraccounted4accounting.com
https://www.youtube.com/watch?v=ifc6WjoYhXA
Click here for the narratedversion of this deck on
Takes less than 6 minutes.
CASH FLOWSFROM
OPERATINGACTIVITIES
facebook.com/uraccounted4accounting/
facebook.com/uraccounted4accounting/
INTERACTIONSIncome Statement
andBalance Sheet
facebook.com/uraccounted4accounting/
CASH FROMCUSTOMERS
SalesIncome Statement
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DEBIT: A/RCREDIT: Sales
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CASH FROMCUSTOMERS
A/RBalance Sheet
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SALES $1 ,000 ,000
A/R - end of year (100 ,000)
Collected? 900 ,000
PROBABLY NOT
WE NEEDTHE
CHANGEIN A /R
facebook.com/uraccounted4accounting/
facebook.com/uraccounted4accounting/
SALES $1 ,000 ,000
A/R - end of year (100 ,000)
A/R - beginning of year 95 ,000
Collected? 995 ,000
MAYBE
facebook.com/uraccounted4accounting/
A/R (5,000)Sales
>Collections
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ALLOWANCEFOR
DOUBTFULACCOUNTS
CollectWrite Off
facebook.com/uraccounted4accounting/
A/R GOES DOWN WHEN:
AllowanceBad DebtExpense
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WATCH FOR
facebook.com/uraccounted4accounting/
▲ ALLOWANCE<
BAD DEBT EXP=
WRITE OFFS
Net Change $1,000
Bad Debt Exp $1,500
?????facebook.com/uraccounted4accounting/
facebook.com/uraccounted4accounting/
+$1,500Allowance =
$4,500
facebook.com/uraccounted4accounting/
WRITE OFFS
=
$500
facebook.com/uraccounted4accounting/
SALES $1 ,000 ,000
A/R - end of year (100 ,000)
A/R - beginning of year 95 ,000
Collected ?????????
facebook.com/uraccounted4accounting/
NET▲ A/R = +$5,000WRITE OFFS = $500
REAL ▲ A/R = +$5,500
facebook.com/uraccounted4accounting/
SALES $1 ,000 ,000
A/R - end of year (100 ,000)
A/R - beginning of year 95 ,000
WRITE OFFS ( 500)
Collected $994 ,500
R e c a p o f w h a t w e c o v e r e d :
$ Received andPaid
uraccounted4accounting.com
R e c a p o f w h a t w e c o v e r e d :
$ Received andPaid
uraccounted4accounting.com
Sales and ▲ A/R
R e c a p o f w h a t w e c o v e r e d :
$ Received andPaidSales and ▲ A/R
uraccounted4accounting.com
Adjust For WriteOffs
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