by admin | Jun 13, 2023 | Bookkeeping
In such cases, the business must first debit its AR account and credit its allowance for doubtful accounts. Here the business assesses its past records and chooses an appropriate percentage of AR they expect to go unpaid. It is critical to have an allowance for...
by admin | Apr 4, 2023 | Bookkeeping
ContentStay up to date on the latest accounting tips and trainingWhat is Allowance for Doubtful Accounts? [Calculation & Journal Entry]Adjusting the AllowanceWhat is an allowance for doubtful accounts (ADA)?What is allowance for doubtful accounts? To create a...
by admin | Mar 27, 2023 | Bookkeeping
ContentService OrganizationsWhat Are the Principles of Accounting?The Revenue PrincipleReal-Life Example of an Accounting PolicyCosts that cannot be capitalized on a company’s balance sheetDetermine your tax obligationsActivity-Based Costing Aggressive policies tend...
by admin | Feb 21, 2023 | Bookkeeping
ContentLimitations of Using the Current RatioHow to Calculate (And Interpret) The Current RatioHow Is the Current Ratio Calculated?Accounting 101: Calculating The Activity RatioAnalysing the quick ratio (or acid test ratio)Current ratio vs. quick ratio vs....
by admin | Nov 8, 2022 | Bookkeeping
ContentCounting inventoryFinancial PerformanceHow to Calculate Accuracy of Inventory VarianceRetail Method In-depth ExampleBuild your dream business for $1/monthBenefits of Shifting from a 3PL to 4PL Business ModelShipBob takes the guesswork out of inventory...
by admin | Oct 7, 2022 | Bookkeeping
ContentHow to calculate Days Sales Outstanding with the DSO formulaWhat does a low DSO mean?Days Sales OutstandingOffer incentives for early payments and penalties for late paymentsHow to calculate DSO?Flag customers that are not paying within the expected window of...
