Bookkeeping

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 […]

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

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

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

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

Most of these loans defaulted when the relative value of the Icelandic currency depreciated dramatically, causing loan payment to be unaffordable. This can also refer to a trade with more than one leg, where you earn the spread between borrowing a low carry asset and lending a high carry one; such as gold during financial

Equity is difference between assets and liabilities, and is often considered the true value of a business. Different types of accounts are affected differently be debits and credits. In order for your financial statements to be accurate, you need to keep a good record of credits and debits. Keeping track of all credits and debits

Under the SYD method, the business will have recorded $16,000 in depreciation by the end of the 5th year, resulting in a NBV of $4,000. The computer has been in used for three years, and thus it has accumulated $1,000 in depreciation. In this case, the NBV of the computer would be equal to $700,

You need to pay a 5 percentage (standard value) of your total invoice value to a third-party (finance company). It is the fee the https://turbo-tax.org/law-firms-and-client-trust-accounts/ company charge you, usually on a monthly basis, for releasing the cash to you. These discounting charges are worked out on a percentage basis of the invoice value, typically ranging