Bookkeeping

Refunds require issuance of payment, while credit memos reduce balances owed. If you want to quickly create a credit note, you can use credit memo/note software and create unlimited credit memorandums. A credit memo is a commercial document issued by a supplier to the customer notifying the reduction of the amount that a customer owes […]

A period cost is typically selling, general and administrative costs expensed on the income statement when it is incurred. On a traditional income statement, costs or expenses are classified as product or period. On a contribution margin income statement, costs or expenses are classified as variable or fixed. Regardless of how the costs are classified,

Contra accounts allow businesses contra asset account to account for unpaid invoices, depreciation, and discounts. Tracking these adjustments separately prevents overstating income or asset values, helping businesses anticipate financial risks and avoid sudden losses. Managing contra-liability accounts helps you keep your financial records accurate. Purchase Return, Allowance, and Discount Contra Expense Accounts By reducing manual

Liabilities are listed on a company’s balance sheet and expenses are listed on a company’s income statement. Expenses can be paid immediately with cash or the payment could be delayed which would create a liability. It’s a long-term liability if a business takes out a mortgage that’s payable over a 15-year period but the mortgage