Accounting - Understanding Receivables and Payables Course

In this course you will learn how to account for and manage receivables and payables. For the receivables you will learn how to calculate a bad debt provision amount based on a company’s history using both the aging schedule and the allowance method. The bad debt amount for the financial reports is then managed by posting that provision, and then processing the realized loss of revenue when it becomes overdue. On the payables side you will learn how to make provision for known liabilities, estimate liabilities such as warranty liabilities and how to plan for the contingent liabilities mostly resulting from legal issues. The course also looks at raising short term finance through the use of promissory notes – distinguishing between interest bearing notes and discounted notes with examples of calculations of the postings for each. You will also learn about accounting for notes that are dishonored. The final section explains the use of the accounts receivable turnover and the number of days’ sales in accounts receivables ratios and the relevance of the level of liquidity they represent. This free online accounting course will be of great interest to entrepreneurs and business professionals who would like to better understand, manage and account for the receivables and payables, and to any learner who is interested in accounting as a future career.