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ASP Notes Page 32

The document outlines the accounting procedures for recording sales, estimating uncollectible amounts, and handling bad debts using both direct and allowance methods. It details journal entries for total sales, estimated uncollectibles, and actual write-offs, as well as the recovery of previously written-off accounts. Additionally, it mentions the need to complete activities related to inventory and Lesson 4, while the author has a meeting scheduled for accreditation.

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Jeizel Concepcion
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18 views2 pages

ASP Notes Page 32

The document outlines the accounting procedures for recording sales, estimating uncollectible amounts, and handling bad debts using both direct and allowance methods. It details journal entries for total sales, estimated uncollectibles, and actual write-offs, as well as the recovery of previously written-off accounts. Additionally, it mentions the need to complete activities related to inventory and Lesson 4, while the author has a meeting scheduled for accreditation.

Uploaded by

Jeizel Concepcion
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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1. Total sales on account 50, 000.

In this transaction, gagamitin tayo ng direct and allowance method.

But the entry is the same:

AR 50,000

Sales 50, 000

Since recording pa lang ng sales.

2. Estimated amount uncollectible is 6,000.

No journal entry is required using direct method.

Bakit? Kasi unang una, hindi natin ginagamit ang direct method kung estimated lang ang
amount.

Yan yung rule natin kanina na nakabase sa Tax Code.

Ang pwede lang nating gamitin dito ay allowance method.

Bad debt expense 6,000

Allowance for bad debt 6,000

Next transaction is.

3. Actual amount ascertained to be worthless, 2,000.

Since dito may actual amount na pwede na gumamit ng direct method.

Gamit ang direct method:

Bad debt expense 2k

AR 2k

Gamit naman ang allowance method:

Allowance method 2,000

AR 2,000

Thumbs up this message nga guys for your attendance .


Now paano kaya natin irerecover yung account na niwrite off natin? Nilagay nio sya allowance
pero nakolekta natin sya.

Assume natin na may narecover tayo na 1,500 of the accounts na recorded natin as
uncolllectible.

Gamit ang direct method:

Accounts receivable 1, 500 (dr) Recovery of accounts written off 1, 500 (cr)

Using allowance method naman:

Accounts receivable (dr) , allowance for bad debts 1, 500 (cr)

Ito ang gagamitin natin sa recharging ng account.

Binalik lang natin as receivable.

To record collection naman simply debit cash, credit AR.

Any questions?

Yung inventory guys study nio na lang, may meeting kasi ako for accreditation today ng 2pm.
Madali lang yun. Then yung activity ng Lesson 4 pakitapos na po.

Gamitin na muna oras natin to settle ur activities. And send ko itong bagong activity sa MS.

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