Month: July 2021

Bad debt expense is one way of accounting because some customers will not pay their accounts. It’s a reasonable and accepted accounting principle, and it’s crucial to properly account for this kind of debt expense by defining, notating and calculating it accurately. In addition, maintaining accurate records of doubtful debt expenses ensures that companies comply …

Is a Bad Debt expense an Operating expense? Read More »

This is likely to be complex, so the inventory allocation method is recommended. With periodic accounting, the purchase value is added directly to the Profit and Loss report or Income Statement when you buy the stock, and the inventory adjustment is added at the end of the month. You can only get an accurate profit …

Journal entries for inventory transactions Read More »