Post Archive by Month: June,2023

For example, if a firm has 2,000 purchases on account during the month, the purchases account will be debited once, not 2,000 times. Examples of such entries are adjusting entries, closing entries, transferring entries, and correcting entries. If a particular transaction does not fit into one of the above groups, it is recorded in the general journal. A single journal

The income statement also reports on activity through income and expenses. These items are crucial in helping companies calculate their earnings for a period. A bad debt expense is typically considered an operating cost, usually falling under your organization’s selling, general and administrative costs. This expense reduces a company’s net income over the same period the sale resulting in bad