The book value of an asset is also referred to as the carrying value of the asset. When the allowance account is used, the company is anticipating that some accounts will be uncollectible in advance of knowing the bookkeeping services specific account. When a specific account is identified as uncollectible, the Allowance for Doubtful Accounts…
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By analyzing variable cost examples, businesses can predict how increased production what’s the difference between salary vs wage employees impacts profitability, avoiding mistakes in decision-making. Because variable costs scale alongside, every unit of output will theoretically have the same amount of variable costs. Therefore, total variable costs can be calculated by multiplying the total quantity…
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The IncomeSummary account has a new credit balance of $4,665, which is thedifference between revenues and expenses (Figure5.5). The balance in Income Summary is the same figure as whatis reported on Printing Plus’s Income Statement. The accounts that need to start with a clean or $0 balance goinginto the next accounting period are revenue, income,…
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Now for this step, we need to get the balance of the Income Summary account. In step 1, we credited it for $9,850 and debited it in step 2 for $8,790. Prepare the closing entries for Frasker Corp. using the adjustedtrial balance provided. Printing Plus has a $4,665 credit balance in its Income Summaryaccount before…
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One of the conveniences of the petty cash fund is that payments from the fund require no journal entries at the time of payment. Thus, using a petty cash fund avoids the need for making many entries for small amounts. Only when the fund is reimbursed, or when the end of the accounting period arrives,…
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In this journal entry, we credit the sales revenue because in the retail business the cash shortage usually happens due to us failing to keep the accurate records that are related to sales revenue. Also, the debit of cash over and short represents the loss, e.g. a few dollars, due to the cash being less…
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Training staff and integrating technology to automate the FIFO system will be pivotal in optimizing the benefits of FIFO. Fact – FIFO is a systematic method, but its accuracy depends on proper record-keeping and following set procedures. Errors in tracking inventory can lead to inaccurate FIFO calculations. Fact – During inflationary times, FIFO can lead…
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Waiting for the primary contractor to get paid can create significant delays, and factoring offers a way to access funds more quickly. For longer-term financing, or if you have good credit, explore options like business lines of credit or online lenders. Even business credit cards can be a better alternative for short-term needs if you…
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Do you have personal dreams or goals that you would want to achieve at some point in your life? Maybe you’re worried that time is passing you by, and you don’t have much to show for your life thus far. Angel number 419 nudges you to align your activities with your life purpose and spiritual…
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Angel Number 419 is a combination of three distinct numbers – 4, 1, and 9. The number 4 means and represents practicality, organization, and stability. Angel Number 419 encourages you to use your natural lightworking talents, skills, and interests to help awaken and heal the world. Overall, the 419 angel number is a powerful symbol…
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