bad debt expense, Debt news.

Apr 23, 2009 by LegalizeHo'sCriminalizeborti | Posted in Other - Business & Finance

A doctor is using the insurances 1099's to figure out his income.
He adds the practice's operating expenses to offset this income.
However he says he does not get any figures from his billing service in regards to Bad Debt expense.

Well, the billed amount and the allowed amount don't really have anything to do with bad debt expense. Generally speaking, if the income was included, and the client never paid, then you can deduct the amount unpaid as bad debt expense. However- if the

Nov 07, 2009 by James | Posted in Other - Business & Finance

I have reviewed both my introductory and intermediate accounting books, and they don't show what exactly net sales are when estimating bad debts. They give you a number called net sales, but don't tell you how that is actually pulled from the general

You nailed it.

Net sales equal Gross Sales, less sales returns and less sales discounts

Mar 14, 2011 by merrie girl | Posted in Other - Business & Finance

For example, a company had credit sales of $550,000 and estimates that 2% of credit sales would be uncollectable. The Accounts Receivable balance was $350,000 on the balance sheet date and the Allowance for Doubtful Accounts had a credit balance of $10,000

A company had credit sales of $550,000 and estimates that 2% of credit sales would be uncollectable.
2% of $550,000 = $11,000
Dr Bad Debt Expense $11,000
Cr Allowance for Doubtful Accounts $11,000

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