{"id":144092,"date":"2022-09-21T16:04:09","date_gmt":"2022-09-21T14:04:09","guid":{"rendered":"https:\/\/www.erasmusmagazine.nl\/en\/?p=144092"},"modified":"2025-12-19T11:26:26","modified_gmt":"2025-12-19T10:26:26","slug":"during-accounting-lectures-economics-students-learn-what-companies-do-when-you-return-your-order","status":"publish","type":"post","link":"https:\/\/www.erasmusmagazine.nl\/en\/2022\/09\/21\/during-accounting-lectures-economics-students-learn-what-companies-do-when-you-return-your-order\/","title":{"rendered":"During Accounting lectures, economics students learn what companies do when you return your order"},"content":{"rendered":"

During the Accounting lectures, first-year Economics students learn how to cater for unexpected bookkeeping situations, such as returns, late payments or failure to pay. “I love this lecture because everything’s so structured.”<\/p>\n

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\n\t\n\n<\/svg>\n<\/span>\n\tImage by:<\/span>\n\n\t\t\t\n\t\t\t\t\t\t\tPauline Wiersema<\/a>\t\t\t\t\t<\/span>\n\t<\/p>\n<\/figcaption><\/figure>

Fifteen minutes before the lecture, most students are already seated in the auditorium of the Van der Goot building. Although the auditorium seats all 600 students, only 150 are present due to a train strike. On the podium is a table, with a computer projecting the PowerPoint presentation onto the large screen. The battery in the clock above the door needs replacing, as it reads 2:30 instead of 10:45.<\/p>\n\t

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Lecture:<\/strong>\u00a0Accounting (Friday 11 a.m. in M1-12 (Oxford))<\/p>\n

Lecturer:<\/strong>\u00a0Jeroen Suijs<\/p>\n

Topic:<\/strong>\u00a0How to do accounting when your debtors have made a mess of things (by returning products or not paying)<\/p>\n

Attendees:<\/strong>\u00a0First-year Economics and Fiscal Economics students. 150 students in the lecture theatre, the rest had to watch online due to a train strike.<\/p>\n

Reason to listen:<\/strong> Learn how accounting works so that you can correctly interpret and use financial information. Or as student Wesley put it: “With this knowledge, you can earn tons of money in the future.”<\/p>\n\n\t<\/div>\n

Processing returns in the balance sheet<\/h2>

The voices of chattering students resound through the auditorium. Lecturer Jeroen Suijs waits patiently until everyone is seated, then closes the door and commences the lecture. The topic is sales bookkeeping, and how to account for the possibility that some products sold will be returned.<\/p>\n

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\n\t\n\n<\/svg>\n<\/span>\n\tImage by:<\/span>\n\n\t\t\t\n\t\t\t\t\t\t\tPauline Wiersema<\/a>\t\t\t\t\t<\/span>\n\t<\/p>\n<\/figcaption><\/figure>

Using lots of emojis, the lecturer divides the process into three stages. In Stage 1, we see emojis of clothing items and a handshake: products are sold to the value of EUR 400. Underneath is the balance sheet. \u201cWe enter \u2018Debtors\u2019 on the debit side of the balance, and \u2018Sales revenue\u2019 on the credit side \u2013 both should show 400 euros\u201d, he explains.<\/p>\n

In Stage 2, the debtor sends some of the stock back (the emojis show clothing, a van and a sad face). How should this be entered into the balance sheet? \u201cImagine that the returned products total 100 euros. We enter \u2018Sales returns\u2019 on the debit side and \u2018Debtors\u2019 on the credit side, both showing 100 euros. That allows the revenue to be corrected in Stage 3, where we have \u2018Cash\u2019 and \u2018Debtors\u2019 with 300 in the balance.\u201d<\/p>\n

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Noise in the back<\/h2>

Suijs\u2019 explanations are interrupted by chattering in the rear of the auditorium. \u201cCould you quieten down please?\u201d the lecturer asks. \u201cYou might think you\u2019re talking quietly, but we can all hear you.\u201d Some students look apologetic, while trying to stifle their laughter.<\/p>\n

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\n\t\n\n<\/svg>\n<\/span>\n\tImage by:<\/span>\n\n\t\t\t\n\t\t\t\t\t\t\tPauline Wiersema<\/a>\t\t\t\t\t<\/span>\n\t<\/p>\n<\/figcaption><\/figure><\/div>

The lecturer continues his explanation. \u201cThough the method above is perfectly fine\u201d, he says, \u201cduring Stage 1 it doesn\u2019t provide a realistic picture of the revenue generated.\u201d So what many businesses do is to allow for possible returns as soon as a transaction is made, by reserving an amount on the balance sheet for the expected returns. \u201cSo instead of just \u2018Debtors\u2019 and \u2018Sales revenue\u2019, we also put \u2018Expected returns\u2019 into the balance sheet. Here, for example, we see 400 euros for \u2018Debtors\u2019 (debit), 250 euros for \u2018Sales revenue\u2019 (credit) and 150 euros for \u2018Expected returns\u2019 (credit).\u201d The lecturer looks around. \u201cClear? Are there any questions?\u201d<\/p>\n

Mad about accounting<\/h2>
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\n\t\n\n<\/svg>\n<\/span>\n\tImage by:<\/span>\n\n\t\t\t\n\t\t\t\t\t\t\tPauline Wiersema<\/a>\t\t\t\t\t<\/span>\n\t<\/p>\n<\/figcaption><\/figure><\/div>

Julia isn\u2019t bothered by a few students interrupting the lecture with their chatter. She\u2019s in the third row, where she can concentrate properly on what the lecturer is saying. \u201cI love this lecture, because everything\u2019s so structured\u201d, she says. \u201cAnd I just love figures and bookkeeping. I keep my own ledger, where I record all of my personal income and expenditure.\u201d She doesn\u2019t use an app. \u201cNo, I find it therapeutic to keep a tally in my notebook the old-fashioned way.\u201d<\/p>\n

Jane doesn\u2019t keep a record of her expenses, but she has no problem doing it as an exercise for the subject. \u201cThe lecturer explains how to do it. The lectures are also interactive, he asks questions to keep people engaged.\u201d Her fellow student Sam agrees. \u201cThe lecture is well-structured, the lecturer explains everything step by step, so he repeats a lot while adding new material. He also does a lot of checks to make sure everything\u2019s clear.\u201d Accounting is not difficult, these students think. Jane says: \u201cBut perhaps we enjoy it because we understand it and have prepared properly. I don\u2019t know if it would be as fun if you didn\u2019t get it.\u201d<\/p>\n

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\n\t\n\n<\/svg>\n<\/span>\n\tImage by:<\/span>\n\n\t\t\t\n\t\t\t\t\t\t\tPauline Wiersema<\/a>\t\t\t\t\t<\/span>\n\t<\/p>\n<\/figcaption><\/figure>

Getting to work<\/h2>

There are several students in the rear of the auditorium who seem less concerned with the lecture, as they stare at their phones with earpods in. One student in a flannel shirt was willing to talk with EM<\/em>, but preferred to remain anonymous so as \u2018not to get a reputation as a troublemaker.\u2019 \u201cHonestly, I find these lectures really boring. Accounting just isn\u2019t that appealing.\u201d He admits that he hasn\u2019t yet taken the time to fully dive into the material. When asked how he plans to catch up, he laughs: \u201cI guess I\u2019ll just have to work hard, won\u2019t I? I\u2019ll get to it properly this weekend. If I pass, I\u2019ll drop by your office personally to let you know.\u201d<\/p>\n\n\t

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Read more<\/h2>\n\t\t\t\n\t\t\t