Net Credit Sales - BMGT 220, University of Maryland--College Park

in Topic 7 (Video 5 of 6)

5 minutes

When you're using the Income Statement method, you calculate your Bad Debt Expense off of Net Credit Sales. Remember how to do Net Credit Sales?

This Video Mentioned Some Formulas

Total Credit Sales

– Sales Returns and Allowances

– Sales Discounts

Net Credit Sales

Bad Debt Expense = Net Credit Sales * Estimated %

(Income Statement Method)

1	A/R and Bad Debts Introduction	7:09
2	Direct Method	4:15
3	The Allowance Method	8:56
4	Income Statement vs Balance Sheet Methods	13:14
5	Net Credit Sales You are here.	5:20
6	Write Offs and Reinstatements	8:26

	Click Here to View All Topic 7 Problems at Once	View
1	The Effect of Bad Debt Expense	Easy
2	Calculating Bad Debts	Moderate
3	The Effect of Uncollectible Accounts	Moderate
4	Using the Balance Sheet Method	Hard