How To Do Bank Reconciliation in 4 Steps [Example+Template]
Template | Examples | Step-by-Step Process | Top Tips for reconciling bank statements Share on facebook Share on twitter Share on pinterest Share on linkedin Contents What is a Bank Reconciliation? A bank reconciliation is a comparison of an entity’s bank account statement to its internal accounting records of bank transactions with the objective to […]
Doubtful Accounts & Bad Debts: All You Need To Know
Allowance for Doubtful Accounts | Provision for Bad Debts | Reserve for Uncollectible Accounts Share on facebook Share on twitter Share on pinterest Share on linkedin Contents What is Allowance for Doubtful Accounts | Provision for Bad Debts? Allowance for Doubtful Accounts, or Provision for Bad Debts, is a contra-asset account with a credit balance, […]
Purchase Discounts, Returns and Allowances: All You Need To Know
Accounting for Purchase Discounts, Returns and Allowances Share on facebook Share on twitter Share on pinterest Share on linkedin Contents What are Purchase Discounts, Returns and Allowances? Purchase Discounts, Returns and Allowances are contra expense accounts with a credit balance, which are used to offset the Purchase expense account that normally carries a debit balance […]
Accounting for Expense Reimbursements [+ Examples]
All you need to know about reimbursable expenses Share on facebook Share on twitter Share on pinterest Share on linkedin Contents What is an Expense Reimbursement account? Expense Reimbursements are contra expense accounts with a credit balance that is contrary to the debit balance of a regular expense account, used when a business makes an […]
Deferred Revenue: Unearned Income from Advance Prepayments
What you need to know about Deferred Revenue | Unearned Income | Prepaid Earnings Share on facebook Share on twitter Share on pinterest Share on linkedin Contents What is Prepaid | Deferred | Unearned Revenue Income? Deferred or unearned revenue income is a balance sheet liability containing advance prepayments that are yet to be earned […]
Sales Discounts, Returns and Allowances: All You Need To Know
Accounting for Sales Discounts, Returns and Allowances Share on facebook Share on twitter Share on pinterest Share on linkedin Contents What are Sales Discounts, Returns and Allowances? Sales Discounts, Returns and Allowances are contra revenue accounts, also known as contra sales accounts, with debit balances that reduce the gross Sales Revenue credit balance on an income […]
Treasury Stock Buyback: Accounting for Repurchased Shares
How to Account for Treasury Stock | Repurchased Shares | Reacquired Shares | Stock Buyback Share on facebook Share on twitter Share on pinterest Share on linkedin Contents Definition: What is Treasury Stock? Treasury stock, or repurchased shares, is a contra equity account with a debit balance that reduces the total amount of equity held […]
Owner’s Draws: A Complete Guide to Owner Drawings
All you need to know about withdrawals and distributions of Owners’ Equity in the Drawing Account Share on facebook Share on twitter Share on pinterest Share on linkedin Contents Definition: What is an Owner’s Drawing account? Owner’s Drawing is a temporary contra equity account with a debit balance that reduces the normal credit balance of […]
Discount on Bonds Payable: All You Need To Know [+Examples]
Definition | Examples | Journal Entry | Calculation Formula | Financial Statements Share on facebook Share on twitter Share on pinterest Share on linkedin Contents What Is a Discount on Bonds Payable? Discount on Bonds Payable is a contra liability account that is debited for the purpose of offsetting a credit on a liability account […]
Accumulated Depreciation: All You Need To Know [+ Examples]
Definition | Explanation | Examples | Journal Entry | Financial Statements Contents Share on facebook Share on twitter Share on pinterest Share on linkedin What is Accumulated Depreciation? Accumulated depreciation is a contra asset account with a credit balance that records the cumulative reduction in the value of capital assets incurred to date due to […]