Hello in this presentation we’re going to take a look at the allowance method which is of course related to the accounts receivable account, we will be able to define the allowance method record transactions related to recording bad debt recording the receivable account that has been determined to be uncollectible recording every single account that has been collected after being determined that it was uncollectible. So we’re going to take a look at some different transactions, the most common transactions when dealing with the allowance method and see what those look like and why we use the allowance method. We’re going to work through a problem. So what we’re going to have here is we’ve got our accounting equation, of course we have our trial balance, I do suggest working problems to take a look at a trial balance because it can give you the context in which to work problems. So here’s what we have. We’ve got the assets in green, the liabilities are going to be orange, the light blue is the capital account and the equity section.