Interactive Guide to Accounts Receivable
From sales discounts to bad debt allowances, this guide brings the core concepts of managing trade receivables to life.
Sales Discount Calculator
See how the Gross and Net methods work for cash discounts. Enter a sale amount and discount terms, then see the journal entries for when the discount is taken versus when it expires.
Gross Method
At time of sale:
If paid within discount period:
Net Method
At time of sale:
If paid AFTER discount period:
Allowance for Doubtful Accounts Simulator
This is the core of financial reporting for receivables under GAAP. Use the controls to estimate bad debts, see the impact on Net Realizable Value (NRV), and simulate writing off an account.
1. Set Initial Balances
2. Estimate Bad Debts (Choose Method)
5%
3. Simulate a Write-Off
Live Financial Impact
Gross A/R
$0
Allowance
$0
Net A/R (NRV)
$0
Bad Debt Expense for the Period:
