Bookkeeping

Those laws have several underlying objectives that influence their development. It means that the cost of the items which were most recently purchased is the cost that will be used for valuation purposes. LIFO usually provides a realistic income statement at the expense of the balance sheet. Conversely, FIFO provides a realistic balance sheet at…

If you’re a solopreneur or independent contractor, chances are you’re responsible for everything, including the accounting. To avoid confusion during tax season, set up a separate bank account for your business. By tracking your business expenses, you can increase profit margins and optimize your income tax return. Accountant Cons They are primarily responsible for preparing…

Bad Debt Expense increases (debit), and Allowance for DoubtfulAccounts increases (credit) for $48,727.50 ($324,850 × 15%). Thismeans that BWW believes $48,727.50 will be uncollectible debt.Let’s consider that BWW had a $23,000 credit balance from theprevious period. The understanding is that the couplewill make payments each month toward the principal borrowed, plusinterest. Legal Remedies and Collections…