ACC 210 at North Carolina State University--Raleigh













Total Credit Sales
– Sales Returns and Allowances
– Sales Discounts
Net Credit Sales
Ending Allowance for Bad Debts = Ending A/R * Estimated %
(Balance Sheet Method)
Bad Debt Expense = Net Credit Sales * Estimated %
(Income Statement Method)
Accounts Receivable
– Allowance for Bad Debts (or Allowance for Uncollectible Accounts)
Net Realizable Value (or Net Accounts Receivable)