Comments on: Adjusting Entries http://business-accounting-guides.com Small Business Accounting Thu, 19 Jan 2012 13:44:17 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Riko Rendael JIreh MAri http://business-accounting-guides.com/adjusting-entries/comment-page-1/#comment-92 Riko Rendael JIreh MAri Thu, 05 Aug 2010 04:21:14 +0000 http://business-accounting-guides.com/?page_id=517#comment-92 What are the differences between the ASSETS METHOD AND LIABILITY METHOD..how would i know what method is used? What are the differences between the ASSETS METHOD AND LIABILITY METHOD..how would i know what method is used?

]]> By: Kenneth F. Meunier http://business-accounting-guides.com/adjusting-entries/comment-page-1/#comment-75 Kenneth F. Meunier Thu, 22 Jul 2010 07:09:00 +0000 http://business-accounting-guides.com/?page_id=517#comment-75 Hi Muhammad - The allowance for doubtful accounts is adjusted to the new estimate for the year. For example, if the balance is $500 and the new estimate is for $600, you would credit the account for $100 if you are using percentage of accounts receivable method. If you are using the percentage of sales method, the entire amount is adjusted each period (in this case a credit for $600). The page on allowance for doubtful accounts should help: http://business-accounting-guides.com/allowance-for-doubtful-accounts.html Hi Muhammad -

The allowance for doubtful accounts is adjusted to the new estimate for the year. For example, if the balance is $500 and the new estimate is for $600, you would credit the account for $100 if you are using percentage of accounts receivable method. If you are using the percentage of sales method, the entire amount is adjusted each period (in this case a credit for $600).

The page on allowance for doubtful accounts should help: http://business-accounting-guides.com/allowance-for-doubtful-accounts.html

]]> By: Muhammad Shahrukh-Pakistan http://business-accounting-guides.com/adjusting-entries/comment-page-1/#comment-74 Muhammad Shahrukh-Pakistan Tue, 20 Jul 2010 07:49:33 +0000 http://business-accounting-guides.com/?page_id=517#comment-74 Dear Sir, I have a very confusion about allowance for bad debts. when I make an adjusting entry I just check that if allowance for bad debts in trial balance has a Dr. balance so i add and make general entry and, if allowance for bad debts in trial balance has a Cr. balance so I less and make general entry . But I don’t know that what is the rule applied behind it. Kindly solve this problem Dear Sir,
I have a very confusion about allowance for bad debts. when I make an adjusting entry I just check that if allowance for bad debts in trial balance has a Dr. balance so i add and make general entry and,
if allowance for bad debts in trial balance has a Cr. balance so I less and make general entry . But I don’t know that what is the rule applied behind it. Kindly solve this problem

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