In this lesson, Nick Palazzolo, CPA, tackles the ins and outs of trade receivables, breaking down what they are and the significance they hold in day-to-day operations. Starting with the basics, Nick clarifies the difference between trade and note receivables, emphasizing the operational nature of the former. From there, he takes a deep dive into how to calculate trade receivables, allowances, and the preparation of necessary journal entries. The discussion then shifts to secured borrowings, factoring, and other financial maneuvers that show trade receivables' versatility as an asset. To ensure a robust understanding, Nick explains how to perform a roll forward of the trade receivables account and the crucial reconciliation steps between the sub-ledger and general ledger. With practical examples and an engaging approach, Nick ensures that by the end of the lesson, the complexities of trade receivables will be much clearer.
Lesson: Trade Receivables Overview and Objectives
In this lesson, Nick Palazzolo, CPA, tackles the ins and outs of trade receivables, breaking down what they are and the significance they hold in day-to-day operations. Starting with the basics, Nick clarifies the difference between trade and note receivables, emphasizing the operational nature of the former. From there, he takes a deep dive into how to calculate trade receivables, allowances, and the preparation of necessary journal entries. The discussion then shifts to secured borrowings, factoring, and other financial maneuvers that show trade receivables' versatility as an asset. To ensure a robust understanding, Nick explains how to perform a roll forward of the trade receivables account and the crucial reconciliation steps between the sub-ledger and general ledger. With practical examples and an engaging approach, Nick ensures that by the end of the lesson, the complexities of trade receivables will be much clearer.
Updated: Oct. 20, 2021 Create an account