Bookkeeping

Allowance for Bad Debt: Definition and Recording Methods

By Simon
- March 31, 2022
An accurate estimate of the allowance for bad debt is necessary to determine the actual value of accounts receivable. One method is based on sales, while the other is based on accounts receivable. The purpose of making an ...
0
Product Costs Types of Costs, Examples, Materials, Labor, Overhead

By Simon
- December 13, 2021
When you look at a business’s income statement or a balance sheet, product and period costs show up there, influencing different parts of these financial statements. Examples of product costs include the cost of raw materials used, depreciation ...
0
Accounting Equation Examples

By Simon
- February 4, 2021
Then, current and fixed assets are subtotaled and finally totaled together. This transaction affects only the assets of the equation; therefore there is no corresponding effect in liabilities or shareholder’s equity on the right side of the equation. ...
0