Course Description

Sales are a part of any business. Whether you are selling a service or a product, it is important to understand the various accounting components of the sales process to help keep financial statements and accounting reports accurate and useful. However, the accounting entries vary based on whether you are using the cash or accrual basis of accounting. In this course, we will discuss the accounting entries that need to be made during each stage of the sales process, the role of bad debt expense and how this works in conjunction with the Accounts Receivable and Allowance accounts on the balance sheet.

Learning Objectives

  • State the major components of the sales process

  • Recognize the accounting differences between cash and accrual basis sales and cash collections

  • Identify the basic journal entries related to allowance for bad debts

Additional Required Materials

  • Level: Basic

  • Field(s) of Study: Accounting

  • Who Should Attend: Small business owners who want to better understand how the sales process, accounting records, and financial statements fit together.

  • Required Knowledge: None

  • Advanced Prep: None

Instructor

CPA, CPCU, MST, MBA David Peters

David Peters is the Founder and Owner of Peters Tax Preparation & Consulting in Richmond, VA. He has over fourteen years of experience in financial services, including 3 years in the hedge fund industry and six years in the insurance industry. David was the first-ever Chief Financial Officer at Compare.com - a position he held for over three years. He is a national CPE Instructor/Discussion Leader for the AICPA, Surgent, and Kaplan. He regularly teaches courses in accounting, finance, insurance, and ethics throughout the United States. He holds four Masters degrees and contributes regularly to various CPA publications, including NCACPA’s Interim Report, SCACPA’s CPA Report, and VSCPA’s Disclosures. He was also a co-author of the 2018 Virginia CPA Ethics course – a required course for all CPA’s licensed in the Commonwealth of Virginia.