Bad Debt

As you can see from this mock Balance Sheet of our business, it (1) has enough assets to pay our debts when they are due, and (2) the claims of short and long-term creditors on

Accounts Receivable, Other Receivables, Allowance for Doubtful Accounts, Bad Debt ExpenseInventories and Reserve for Inventory Obsolescence

Since the majority of US thrive on the use of credit cards, the accounts receivables for a company may no longer be on a cash-to-cash basis. A company may need to sell these accounts to other companies who specialize in handling accounts receivables if they need cash more quickly or if it would be too costly to perform the necessary billing to collect on the account.

We as americans seem to have a very serious problem. By doing some research I have been able to conclude some intresting ideas on what to do to fix our debt problem. First of all we need to stop bwing in wars, the more that we lose the more that we are going to be hurt and deeper in the hole of debt we will go. Second we need to stop paying our RETIRED U.S. presidents so much money it's not helping the fact that they get so much. We need to also need to stop buying so much imported goods. If we can accomplish these simpe tasks we can fix a lot of our debt problems and be a better country.

Is getting a college education worth going into debt? That is a good question and one that I say yes to. There are many reasons to go to college, such as getting that high quality education to go further in the job you currently have, or to get an new job all together. Another reason could be to become a good role model for your kids, or just so you can proudly say you were the first in your family to go and graduate to college. Another reason could be that you simply go because everyone else in your family has been. Whatever the reason, there are definitely benefits to going into debt in order to go to college, because it has almost become necessary to have a college degree to have a good job.

I believe the debt facing America is one of America's largest problems to this day. America is over 18 trillion dollars in debt. Politicians always speak of reducing the debt, however it has not been done. The debt of America has not even been paused for an extremely long time. According to, taxpolicycenter.org only 55% of Americas spending is mandatory. This means that America may be able to reduce spending by 45%. The main priorities America spends it’s money on is social security, unemployment, food and agriculture, transportation, medical and health care, and veterans benefit. These things are very important, but it makes one wonder, where is the other 45% going? Citizens of America has always said that America, indeed the best country

person or the government). A more narrow aspect of debt is student debt, which is the debt that a

Some of the hardest decisions people contemplate are determining how to handle their finances, especially when funds are plentiful. More to the point, few people seek counsel from professionals who are trained to assist them. Consequently, they are likely to become entangled in debt and ill prepared for times when funds are low. While there are a number of reasons why individuals fail to seek professional assistance as it relates to managing money, there is evidence that this is not supported biblically. Proverbs 13:10, states that, "Through pride and presumption comes nothing but strife, but [skillful and godly] wisdom is those who welcome [well-advised] counsel (Amplified Bible).

Despite the year 1835 when Andrew Jackson eliminated all national debt, America has always remained under some level of debt. Recently there has been a large amount of fear surrounding Americans debt. In 2014, a Gallup poll found that 58% of respondents worry about the federal deficit a great deal. Following Congress raising the debt limit at the end of October, the government experienced the largest single day increase in debt on November 3 (Korte 1). This large increase follows the recent trend of exponential growth of the debt. As the debt continues to grow without the government reducing spending or increasing taxes many citizens and economist are concerned over the debt. In June, the congressional budget office described in a report

As a High School senior, the inevitability of student loans always hung over my head, and yet among the sea of things that I could’ve done, scholarships never felt like an option. Scholarships exist to help students pay for a college education, something which has become indispensable for a “suitable” life nowadays. So then why do students willingly ignore the plethora of scholarships available to them? The answer is frustratingly simple: scholarships aren’t built around the student’s they’re supposed to target.

“The borrower is slave to the lender” is another way of saying that being in debt to someone that you owe. In other words once you get in debt it is extremely hard to get out the easiest way to get out is just not to get in in the first place. If you are borrowing something from someone in this aspect you owe them something until you pay them off. If your not able to pay them off they will repo everything you own until it is payed off. Thats what i think dave ramsey meant by saying what he

Prepare the journal entry to record Bad Debt Expense assuming Duncan Company estimates bad debts at (a) 1% of net sales and (b) 5% of accounts receivable.

When an account receivable is determined to be uncollectable it is no longer qualified as an asset and should be written off. A write off reduced the balance of the customers

Support: The Company’s revenues increased considerably (19%). However, the Accounts receivables also increased significantly (38%). Increase in revenues are generally associated with a proportional increase in the allowance for doubtful debts. By not reporting a significant ‘allowable for bad debt accounts’, the company is able to overstate its profits and could be a cause for concern in the long run, if the receivables turn out to be bad.

Assets in the financial statement are always required and show useful information to investors and understand where the information comes from. For instance, accounts receivable net which the organization does not expect to collect all of the money it is due from all patients and insurers, (Finkler, S.A., Ward, D.M. & Calabrese, I.D., 2013). The bad debts become about of the money due. Furthermore, accounts receivables, net represents gross charges less an allowance for poor debts, and many contractual allowances established with those third party payers. Typically, an example of a bad debt would show charges of a large sum of money delivered from a hospital. Then, the contractual allowances from