Category: Bookkeeping

This make sense because Home Depot wouldn’t be carrying accounts receivable with long payment terms. Most accounts receivable would just be the time between purchase and credit card settlement. If you’re valuing a low-growth company based on its equipment assets, you want to use the net value to be conservative.…

If you sit down in March and look at a transaction from January of last year, there is a high likelihood you may not remember exactly what you bought or sold. Additionally, if you make any mistakes, it is going to cost you in the event of an audit. The…

Now let’s consider what this information would mean for your business. You already know that your variable cost per unit is $0.60 per cookie. Combine that with your average fixed cost of $0.65 per cookie, and you have a total cost of $1.25 per cookie. So if you want to…

You use information from your income statement and your balance sheet to create your cash flow statement. The income statement lets you know how money entered and left your business, while the balance sheet shows how those transactions affect different accounts—like accounts receivable, inventory, and accounts payable. If you do…

Depending on the type of asset — tangible versus intangible — there are differences in the calculation method allowed and how they are presented on financial statements. Understanding these differences is critical when serving business clients. By carefully following these steps, you can leverage the power of the DDB Excel…

In the year, 2015the company decided to develop a provision for bad debts at 10% of the current accounts receivable, which stood at $ 500,000. In the following two years, the accounts receivable increased to $850,000 and then declined to $650,000. Therefore, prepare the journal entries for the bad debt…