Lesson 1: Uncollectible Accounts Receivable
Duration of Days: 2
Lesson Objective
Students will understand the concept of uncollectible accounts receivable, the methods for accounting for uncollectible accounts, and how to apply these methods in real-world scenarios.
What are accounts receivable, and why are they important for a business?
What does it mean for an account to be uncollectible?
Why might an account become uncollectible?
uncollectible accounts, allowance method, book value, book value of accounts receivable, net realizable value, percent of sales method, percent of accounts receivable method, GAAP: Neutrality, aging of accounts receivable.
B. Accounting Principles: Identify and describe generally accepted accounting principles (GAAP/IFRS) and explain how the application of these principles impacts the recording of financial transactions and the preparation of financial statements.
5. Record transactions affecting accounts receivable, including uncollectible accounts, write-offs, and recoveries.
The SAT measures student proficiency in math reading, language, and writing. With strong scores, accounting students set themselves up for successful entry into accounting and finance programs
Purpose:
To equip students with a comprehensive understanding of how to account for uncollectible accounts receivable, enabling them to accurately reflect financial health in business accounting practices.
Description: Define uncollectible accounts receivable and their impact on financial statements.
DOK Level 2: Skill/Concept
Identifying Uncollectible Accounts: Students will identify situations that may lead to uncollectible accounts, such as customer bankruptcy or financial difficulties.
Calculating Bad Debt Expense: Students will calculate bad debt expense using various methods, such as the percentage of sales method and the aging of accounts receivable method.
Journalizing Transactions: Students will record journal entries for estimating bad debt expense, writing off uncollectible accounts, and recovering previously written-off accounts.
DOK Level 3: Strategic Thinking
Evaluating Methods: Students will compare and contrast the direct write-off and allowance methods, evaluating the advantages and disadvantages of each.
Businesses use data on uncollectible accounts to refine their credit policies.
Even well-managed businesses can have uncollectible accounts due to factors beyond their control, such as economic downturns or customer bankruptcies.
Sampling, modeling, one one instruction, Moodle. Paper or or online assignments, online instructional tools, videos, textbook or online textbook, excel real world application of information, Spanish version available for ELL students
Discussion Notes, Independent work: Online Working Papers/Paper copy, Guiding Questions, Math Worksheet
Century 21, Accounting General Journal, 11th edition, online/paper edition. Paper or Online working papers (MindTap), class notes, Do Now, Exit Ticket