Leonardo Miler

This typically happens when the balances in these accounts are relatively small, so there is no point in tracking returns and allowances separately. Both cash or sales discount and allowance for sales discount is the same. The total account receivable of $25,000 is discharged from the account receivable balance during the time the customer makes …

What are sales discounts? Leia mais »

Therefore, for these 2,000 additional units, the incremental manufacturing cost per unit of product will be an average of $20 ($40,000 divided by 2,000 units). The reason for the relatively small incremental cost per unit is due to the cost behavior of certain costs. For example, when the 2,000 additional units are manufactured most fixed …

DIFFERENTIAL COST ANALYSIS: Examples & Application to Businesses Leia mais »

Similarly, the expense will reach the total of the prepaid amount at the end of that same period. In exchange, the insurance company usually offers the customer a discount on the premium price, so the business saves money on the policy. At the end of each month, an adjusting entry of $400 will be recorded …

Is prepaid insurance an asset? Leia mais »

Governments must also consider alternative solutions that leverage their assets and the depth of their balance sheets. Indonesia’s DMO, for instance, has issued bonds to fund the country’s response to the COVID-19 crisis and its economic recovery. Thanks to sound fiscal discipline in the preceding years—a deficit of less than 3 percent and a debt-to-GDP …

How do you find the earnings deficit? Is it on the balance sheet? Personal Finance & Money Stack Exchange Leia mais »

Each year of an asset’s life, another year of Depreciation Expense is recorded. The offset to the Depreciation Expense account is Accumulated Depreciation. This means that accounts receivables have a debit balance of $10,000, and the firm credits revenue for $10,000. A contra account is an account with a balance opposite the normal accounts in …

What is a contra-liability account? Leia mais »