View source for Balance sheet approach

[[Balance sheet approach]] is a method used to calculate the amount required in the Allowance for Doubtful Accounts to cover expected uncollectibles. This method is based on the Accounts Receivable amount and the aging process. The adjustment to the [[Allowance for Doubtful Accounts]] will bring the new balance of that account to the new required level.


==Definitions==
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
:[[Balance sheet approach]]. A method used to calculate the amount required in the Allowance for Doubtful Accounts to cover expected uncollectibles. This method is based on the Accounts Receivable amount and the aging process. The adjustment to the [[Allowance for Doubtful Accounts]] will bring the new balance of that account to the new required level.

==Related concepts==
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].

==Related lectures==
*[[Principles of Accounting]]. 

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