acctg2600.com Formula Sheet
| Total Credit Sales |
| – Sales Returns and Allowances |
| – Sales Discounts |
| Net Credit Sales |
| Ending Allowance for Bad Debts = Ending A/R * Estimated % |
| (Balance Sheet Method) |
| Bad Debt Expense = Net Credit Sales * Estimated % |
| (Income Statement Method) |
| Accounts Receivable |
| – Allowance for Bad Debts (or Allowance for Uncollectible Accounts) |
| Net Realizable Value (or Net Accounts Receivable) |