Bookkeeping

Double Declining Balance: A Simple Depreciation Guide

Double declining balance depreciation allows for higher depreciation expenses in early years and lower expenses as an asset nears the end of its life. In accounting, this method is defined as an accelerated depreciation method that records higher depreciation expenses in the early years of an asset’s useful life. Double declining balance depreciation is an

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Is the provision for doubtful debts an operating expense?

Notice how the subsidiary ledger agrees to the GL control account and does not include our estimated $10,000 of bad debt. An allowance for questionable accounts is calculated based on an estimate. Bad debts must be reported promptly and correctly for the reasons stated above. Furthermore, they assist businesses in identifying consumers who have defaulted

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Accounting and Journal Entry for Credit Card Sales

To find out, subtract the credit card merchant fees from the total sale amount. This represents how much money your business actually made from the sale. Revenue and expense recognition timing is critical to transparent financial presentation. Even though GAAP is required only for public companies, to display their financial position most accurately, private companies

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