Accounting for Receivables

Different types of receivables:

  1. A/R,
  2. NOTES
  3. OTHER (GST RECOVERABLE, LOANS TO EMPLOYEES – NON-TRADE REC.

How to account for  bad debts : 1. Direct write off 2.Estimate (allowance)
Which is more accurate? –Direct write off does not match expenses and rev.
How do we estimate? – percentage of sales, percentage of receivables

Notes Receivable
Discussion: the difference between notes and accounts receivable
Demonstration: How to calculate interest on a note