Video Link: https://youtu.be/WliRVZp7i7U

In this video, I have explained:

1) When and how allowance for bad debts is decreased

2) The process of passing journal entries and posting it to ledger to determine:

a) Ending balance of accounts receivable

b) Ending balance of allowance for bad debts before adjustment

3) The process of calculating bad debts by applying % of estimated bad debts on year-end accounts receivable and considering the before adjustment year-end balance of allowance for bad debts to compute estimated bad debts expense

4) Calculation of after-adjustment balance of allowance for bad debts 5) Presentation of accounts receivable, allowance for bad debts and net realizable value in statement of financial position.