CSEC PoA | The Provision for Bad Debts | The Provision for Doubtful Debts | Theory, calculation, etc

[@originalchannel9919]

This man is one of the best POA teachers 🎉🎉🎉

[@adapttuition]

Thanks very much :-) I really appreciate the compliment! Are you sitting PoA this year?

[@ayodelejones5029]

Who still finding this video helpful? ... ")

[@adapttuition]

Ayodele Jones I hope many ppl 😊

[@ericwedderburn2829]

@@adapttuition I definitely do Sir. Thank youuuuuuuuuuuuuuu

[@adapttuition]

@@ericwedderburn2829 You're very welcome! Happy to know you found it helpful :)

[@anderaphillip7271]

omg... you're a blessing sent by God himself fam😣

[@adapttuition]

Andera Phillip thanks for that compliment! I’m glad you found the video helpful.

[@nicketawilliams3989]

No Cap

[@adapttuition]

Much appreciated! Wishing you all the best 😊

[@dannniiiiiiii]

I'm actually hoping this appears on the 2023 paper, a possibility to pick up some marks lol. Thank you, Chris! I didn't have such positive sentiments before.

[@adapttuition]

You’re very welcome, Dani 😊 Glad to hear you’re feeling so positive about it now! Keep up the good work 💪🏽🧠

[@dannniiiiiiii]

@@adapttuition thank you ! us students appreciate all your efforts and time… :)

[@adapttuition]

Happy to help! Keep up the great work 😊

[@aliyahpartap2322]

because of you Sir, I am passing my cxc poa exam😭😭🙏.

[@adapttuition]

Super happy to hear that!!! All the best to you :)

[@nefr2680]

Honestly, a few weeks later I have my IGCSE and this helped very much. Thanks bro❤❤❤

[@adapttuition]

Happy to hear that you found the content helpful! Let me know how the exam was when you sit it 😊 What other topics are you expecting will come in the exam?

[@ananonymoususer6206]

these papers are mad helpful😃

[@adapttuition]

Happy to hear that you’re finding them helpful, Elda 😊 Keep up the good work in your end 👍🏽😊💪🏽🧠

[@simonetingling3693]

Hi Sir. I love how you arrange the foot notes it help me to find the topic that relate to each videos, What I do I read your introduction and then view each video accordingly. I am using your videos assist students to pass 2024 CXC Accounts. Thanks.

[@adapttuition]

Hi Simone 😊 (that’s my wife’s name, too, btw 😄) That’s awesome to hear that you are using the videos to assist students to pass csec PoA this year! Best of luck to you and to them 💪🏽🧠 And, yes, I try to ensure that the description is of benefit to anyone using the videos, otherwise what’s the point, right? You’re the first person to say that you’ve found them helpful so I am super grateful for your feedback. Please let me know how your students are doing and if you need any additional resources please feel free to reach out 😊

[@surinmaharaj2188]

Poa tmr and look at me craming

[@adapttuition]

You gotta do what you gotta do.

[@andreadundas3822]

trying to do the same here🥲

[@rajaereid8486]

Sir you should have been posting videos from long time on Accounts

[@laurelrobinson3502]

factssss

[@adapttuition]

you are so right. I'm sorry I started to so late.

[@rajaereid8486]

@@adapttuition sir if possible please try to do a video after the exam tomorrow..#Solution

[@ericwedderburn2829]

Be grateful. HE DIDN'T HAVE TO DO IT. He could've sit and when it's his free time and watch a movie or smth. Tf

[@rajaereid8486]

@@ericwedderburn2829 I was not trying to be ungrateful luv.. was more appreciative of his videos and wish he was doing this long before then. ✌

[@heatherord3142]

THANK YOU!!!!! Struggling in UK 😬 what figures go where was so confusing until now. BAZINGA

[@adapttuition]

Happy to know that you were able to understand what to do :) Wishing you the best of luck :)

[@iceboxthrill2569]

you ought to win an oscar. great job

[@adapttuition]

Thanks very much 😊 Wishing you all the best

[@gloriabanda5290]

I never understood in school Thanks for making it easy for me

[@adapttuition]

Happy to help Gloria 😊 Keep up the good work 💪🏽🧠

[@LUCIFER-bm8br]

Thanks for the help sir, mock exams in a few days and this topic was giving me some trouble. Please keep doing videos like these!!

[@adapttuition]

You're very welcome! Yes, this topics gives a lot of students trouble. Glad to know that you found the video helpful :) Wishing you all the best

[@simonetingling3693]

I am grateful for yoiur videos. These videos are helping my boys in many ways. Continue doing your best. .

[@adapttuition]

Super happy to hear that your boys are benefitting from the videos 😊 Tell them I said keep up the good work and if you or they have any questions please feel free to reach out 😊 When are they sitting the exam?

[@moniquedixon4494]

Thank you for this I'm in college and it's my first time doing accounts this was really helpful

[@adapttuition]

Glad it helped! Be sure to check to see if the method I use in this video is the method you are required to use for your course. I mentioned at the start of this video that there is an alternative method and that one is usually seen at the college level.

[@emilynduku2530]

What happens in a situation you have both debtors and and bad debts??does the provision for bad debts reduce the bad debts or the debtors

[@adapttuition]

The provision only affects the debtors figure. I am aware of another method of accounting for the provision for bad debts where the provision affects the bad debts item but it isn’t On the syllabus I teach so I am KOT familiar with it.

[@kevonchristie5588]

thanks for the help sir, also loving the big bang theory shirt

[@adapttuition]

Sheldon is life :-P

[@Noni957]

I'm preparing for my final intermediate accounting paper and your videos are a lifesaver. Thank you so much Sir! I have a question though When showing the provision of bad debts account, how to we treat bad debts that were written off?Is it the treated the same as the examples that had pre-existing balance or they are different terminologies? Thanks in advance.

[@adapttuition]

Hi! So there are different ways to approach this. The method I show in this video is what I was taught and what I currently teach to my students based on the syllabus we follow which is based mainly on the British system of accounting. Under this method when we write off bad debts we: Dr Bad debts expense a/c Cr Debtor (Accounts receivable) a/c Most college level courses follow the American system of accounting where the write off of a bad debt when a provision exists is recorded as follows Dr. Provision for Doubtful Debts a/c Cr. Debtor (Accounts receivable) a/c I would strongly suggest you consult your text or lecture notes in order to see which method is used for your course. Wishing you all the best :)

[@safiyamohamed3350]

hi can you do a video on accurals and prepayments

[@adapttuition]

Hi 😊 I already did 😊

[@empressclemonds5675]

Exam tomorrow 😭😭

[@adapttuition]

It will be ok. Give it your best shot. :)

[@clan_homes4881]

Same here 😭

[@rajendraramnarayan8905]

nice video sir........I like the part where u put in the cloud ," I have forgotten words"

[@adapttuition]

XD yes! I really did forget what i wanted to say !

[@rajendraramnarayan8905]

@@adapttuition ( yea ...it does happen sometimes)

[@loganfirstman7014]

Ah! A video truly worthy of a like!

[@adapttuition]

Hi! Thanks for watching :) Glad you found the video helpful :)

[@aathimashraf9544]

im doing cambridge o level (7707) and found your video so useful !thank youu

[@adapttuition]

Happy to hear you found it useful 😊 Thanks for watching. Keep up the good work on your end. You can do it, I believe in you! Stay safe 😊

[@tomasmontoya9034]

Thank you for helping me so much with this vid. Online Classes are very hard to deal with

[@adapttuition]

Hey, happy to hear that you’re finding he content helpful 😊 Yes, online classes are proving to be challenging for me as well. Just have to find a way to deal with it and what works for you. You can do It 😊

[@breannaharry4042]

Thank you for getting up early and making this video, I can see the sleepy in your eyes coming to the end of the video, sir you must sleep a lil more😂. I have exams in a few days, I pray test come easy and I hope I pass, your video helps alot but accounts is not for me. After exams I don't want too see accounts.

[@adapttuition]

Hi Breanna 😊 Keep up the great work and I’m sure you’ll do awesomely 😁 The way accounts is taught turns ppl off, that’s why I make my videos; to try to help ppl at least understand better. Wishing you all the best 💪🏽🧠

[@jayaxxii]

Thank you for this. It is really helpful as I am writing next year.

[@adapttuition]

Glad it was helpful! Wishing you the best of luck :)

[@shadelletennant4878]

Well i have accounts tmrw morning.....so binge watching it is😂

[@adapttuition]

How did you find the exam?

[@shaniahmootilal4.5]

We must protect this man at all cost!!!!🤣

[@adapttuition]

Thanks, Shaniah ❤️

[@nikhilkanade3871]

Hey, great video you never disappoint tho i had a question Explain the difference between a bad debt and a provision for doubtful debts.?

[@adapttuition]

Hey, I thought I covered this in the video. Bad debts refers to the actual debts that are written off as bad; debts we know we will not collect. The provision is an estimate of the value of debts we expect to go bad. So the former is the actual expense and the latter is an estimate of the expense.

[@nikhilkanade3871]

@@adapttuition oh well I might have skipped that part since I was revising the questions, but thanks for the explanation

[@adapttuition]

No problem

[@shocktn7126]

Thanks for the vid sir, great help for my mocks tmr.

[@adapttuition]

You’re very welcome! My pleasure to be of help. Glad you enjoyed and learned from the video. Keep up the good work! You can do it, I believe in you 💪🏽🧠

[@anandbaal25]

Awesome work !!! Keep it coming ❤️❤️

[@adapttuition]

anandbaal25 will do! Thanks for the compliment. Where are you from and when are you doing PoA?

[@carlissaharry1230]

Very helpful video,Thank you

[@adapttuition]

You’re most welcome! Thanks for watching 😊 Wishing you all the best

[@michellekingl8354]

I'M so thankful for this man yesss so so helpful thank you!!!

[@adapttuition]

Happy to help! Wishing you all the best :)

[@abraarmotara5042]

hi Sir have you done a video on the recovery of irrecoverable debts???

[@adapttuition]

Hi Abraar, That's a nice topic, unfortunately, it was removed from the syllabus that I teach several years ago. As a result I no longer teach it and I will probably not be making a video on it anytime soon. Sorry about that. But from what I can remember you would do the following: 1.) Re-establish the receivable DR: Accounts receivable (Debtor) a/c CR: Recovery of irrecoverable debts a/c 2.) Account for the amount received DR: Cash/Bank CR: Accounts receivable (Debtor) a/c 3.) Make the closing entry at the end of the period DR: Recovery of irrecoverable debts a/c CR: Income statement (Profit & Loss) a/c Hope that helps

[@akilidouglas]

This video was very helpful

[@adapttuition]

Very happy to hear that Akili 😊 Keep up the good work

[@jhaniacoke5023]

extremely helpful, thanks !

[@adapttuition]

Thanks for watching 😊 Glad you found it helpful!

[@nathanchin5321]

Hi sir you’ve probably been seeing me a lot in your comments because my exam is next week. For the last question what is one reason why adjustments are made to financial statements and what is the concept that guides adjustements

[@adapttuition]

The accruals concept and the matching principle

[@worekalem.mekuriaw5811]

Good.moring.my.brother.thank.you

[@adapttuition]

Happy to help :)

[@beckywelcome9197]

Thank sir😌❗

[@adapttuition]

Happy to help!

[@tshyasookram4458]

Thank you very much Sir! Much appreaciated

[@adapttuition]

Happy to help! Thanks for watching 😊

[@ashersmith4134]

Is provision for bad debts and bad debts the same thing? Is provision for bad debts minus from the debtors in the balance sheet or is bad debts minus from the debtors in the balance sheet ? One more thing is bad debts treated as an expense in the income statement or is provision for bad debts treated as an expense in the income statement? 👉👈

[@adapttuition]

Great questions (I thought I covered these in the video though). Provision for bad debts is not the same thing as bad debts. Bad debts is the ACTUAL value of receivables that have become uncollectible. The provision is an ESTIMATE of the value of receivables that we expect will become uncollectible. In the balance sheet we subtract the provision for bad debts from the debtors figure. The bad debts figure is an expense and is entered in the income statement. The provision itself is a contra asset and the increase/decrease in the value for the year is what goes in the income statement. If the provision increases then the AMOUNT OF THE INCREASE is treated as an expense and is put in the income statement as such. If the provision decreases then the AMOUNT OF THE DECREASE is treated as a revenue and is put in the income statement as such. Hope this helps.

[@ashersmith4134]

@@adapttuition Thank You!!! It really does help🤝

[@adapttuition]

Happy to help 😊

[@devinamahadeo4973]

Policy is to maintain the provision for doubtful debts at a % of account receivable at the year end?? Sir what they mean by that???

[@adapttuition]

Hi :) It means that they want the provision amount in the balance sheet to be equal to a specific percentage of the accounts receivable (debtors) figure. For example, if they said that the policy is to maintain a provision for doubtful debts of 10% of accounts receivable at year end, and then they tell you that the accounts receivable figure at year end is $25,000, then the provision amount would be 10% of $25,000 = $2,500. I explain this in the video :)

[@trinityhamied]

wow, thank you sm Chris. What are the chances of CSEC bringing this in 2024?

[@adapttuition]

That’s a good question. 30-40%

[@trinityhamied]

@@adapttuition ah okay, I better learn it well then

[@adapttuition]

Good idea

[@beckywelcome9197]

Tysm for the motivation at the end sir🥺❗💯

[@adapttuition]

My pleasure

[@shackoyperry9251]

Thank u sir am failing in poa badly n I got exam may

[@adapttuition]

Hey 😊 It can seem very daunting. Take one thing at a time, make your notes, ask your questions, embrace and learn from mistakes… they’re there to help us grow You got this 👍🏽😊 I believe in you 💪🏽🧠

[@michaelbanda443]

allowance for doubtful debts and provision for Bad debts whats the difference and how do they work in the income statement

[@adapttuition]

They’re the same thing just with different names. I have a video on how to treat with it in the income statement. It’s in the income statement playlist.

[@rinreborn7364]

This is similar to other question i have done and i got them correct already. I have send you the question photo on instagram

[@adapttuition]

Will try to take a look. Things are a bit busy these days with new students starting and plans having to change.

[@tegaliashaw4576]

Good night am having issues with the answer 2880etc am not sure how you come by that answer can you go step by steps here please?

[@adapttuition]

Hi, I do explain (in detail) how I get those figures in the video. If you watch from 06:18 to 07:45 i do go through step by step how I get the figures.

[@sashoyajohnson705]

life saver , thankyou , great videoo

[@adapttuition]

Glad it helped :)

[@jymaalj2996]

Thank you

[@adapttuition]

My pleasure

[@maynyein4539]

Thanks Very Much Sir

[@adapttuition]

You're very welcome! Hope you are doing well and staying safe :)

[@maynyein4539]

@A Different Approach Tuition Limited me too sir. 😍😍😍😍

[@trinityhamied]

Do you by chance have a tut on disposal of an asset?

[@adapttuition]

Hey, I would love to have done that but as it’s not on the current csec poa syllabus it wasn’t a priority.

[@trinityhamied]

​@@adapttuition wait really?? I had no idea, my teachers are still teaching this. And I spent sm hours trying to learn it :(

[@adapttuition]

Yeh… this syllabus needs to be revamped … last year!

[@torigee5108]

Exam tmr 😢, thanks sir 🙏

[@adapttuition]

Happy to help, Tori! Best of luck, and let me know how the exam went!

[@jamarimcfarlane4844]

I don't think it matter but you added instead of subtract in the 2nd to last question.

[@adapttuition]

Jamar McFarlin, hey thanks for pointing that out. I’ll take a look and try not to have any serious mistakes going forward 😊

[@jamarimcfarlane4844]

@@adapttuition u missed it because it was the last thing u did. You're very welcomed.

[@adapttuition]

I saw it, it’s around the 32:00 mark. It was a typo, I entered a “0” instead of a “-“ in the formula.

[@michaellorde5853]

Why am I seeing this 1 day after paper 2

[@adapttuition]

That’s a good question

[@brit7627]

sir any about prov for depreciation?

[@adapttuition]

Sorry not yet but check the Jan 2017 paper and Jan 2018 paper

[@xaladrez7811]

where is the video with the other method using bad debt expense ac??

[@adapttuition]

Hi! Thanks for watching 😊 I haven’t gotten around to making that video yet it thanks for the reminder.

[@revisionmotara2760]

Hi there just wondering where do you get ur questions from

[@adapttuition]

Hi 😊 With the exception of the past paper questions I create all of the material I use

[@revisionmotara2760]

@@adapttuition where would the best place to find past paper questions as I’m studying in the UK for my A-Levels. I’ve tried looking at the exam board website but its not ver helpful. BTW I’m with AQA

[@adapttuition]

Hey 😊 Yeh, those past papers are ridiculously hard to come by. I haven’t gotten any of those in years. The ones where I am which are from a different exam body are sort of “smuggled” out as well

[@revisionmotara2760]

@@adapttuition oh ok thanks ur literally a life saver

[@adapttuition]

Happy to help where I can 😊 Wishing you the best of luck

[@tallyg3495]

LIFE SAVER. LIFE SAVER.

[@adapttuition]

Thanks for the kind words. My pleasure to help. Let me know if you have any questions 😊

[@QuaceMontego]

Are you from Jamaica or Trinidad and Tobago?

[@adapttuition]

Hi, I’m from Trinidad and Tobago 🇹🇹

[@QuaceMontego]

@@adapttuition I guessed Right😁😁 I love your Accent😁

[@adapttuition]

Thanks very much 😊

[@animeocity6609]

uh how is that in the first one its an increase and its less than the change and in the last example its less than the change but its a decrease

[@adapttuition]

Hi, if you put the time from the video where these things happen I can see exactly what you are referring to. Be sure to use four digits like this 02:30 It will turn blue and I’ll be able to click on it and see what it is you are asking about.

[@animeocity6609]

@@adapttuition oh i just realized its the provision your determining the increase and decrease by and not the change

[@adapttuition]

There you go 😊 Good job! Keep it up!

[@animeocity6609]

@@adapttuition thank you

[@animeocity6609]

@@adapttuition are we getting provision with discounts allowed?cause thts really confusing too

[@TheobviousTruth-_-]

I have ts in 3 days🥲

[@adapttuition]

Three days can be sufficient time if you have a good plan and you execute on it

[@lokovalentine7749]

i have a question

[@adapttuition]

What’s the question?

[@adapttuition]

Hi, could you kindly send questions to me on Instagram @adapttuition or to my email [e-mail]? Also, please be mindful I am very busy so I do not always have time to read and do long questions. Thanks

[@lokovalentine7749]

@@adapttuition if A motor vehicle was sold on credit on 31 December 2018 for sh.458,000. The motor vehicle had been bought on 1 June 2017 for sh. 1,000,000 the sale had not been recorded to the ledger. Creditors is 4340000 and debtors 8070 How do you calculate this and where do you place it in the income statement

[@breannaharry4042]

Sir you watch Batman?

[@adapttuition]

Not yet 🙁 I wanted to see it since it opened but just haven’t gotten the time to go see it.

[@breannaharry4042]

@@adapttuition ಥ_ಥ I liked it. It was close to the comics and didn't have too much cgi.

[@adapttuition]

Nice 😁 Gonna try to see it soon.

[@kobesimon4121]

Sir can u do some paper 1 questions

[@adapttuition]

Kobe Simon hey! That’s on the agenda to get done next year hopefully before mock exams (mid March) but definitely before the actual exam. Might do some free live sessions. Will let y’all know on IG

[@kobesimon4121]

Okay thank you so much

[@adapttuition]

Kobe Simon sure thing!

[@zenoraalexander9218]

GOOD VIDEO!!!

[@adapttuition]

Thanks for watching! Glad you enjoyed it. Keep up the good work 💪🏽🧠