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The direct write-off method is a simple process, where you would record a journal entry to debit your bad debt account for the bad debt and credit your accounts receivable account for the same amount. The allowance method offers an alternative to the direct write off method of accounting for bad debts. With the allowance method, the business can estimate … Read More

Amortization, however, is when you have non-physical assets, something less tangible like licenses, copyright, agreements, and software. If you have intangible assets, you would simply amortize it instead of depreciate it. The assets which we can see and touch can depreciate; like machinery and building among others. The company will depreciate $40 million every annual reporting period as an amortization … Read More

An overdraft is a short-term line of credit granted by a bank to an account holder when checks presented against the account exceed the amount of cash available in the account. An account usually has to be designated as having overdraft protection before this feature will be operable. The amount of an overdraft is usually capped at an overdraft limit, … Read More

These proposed regulations, once adopted as final regulations in a Treasury Decision published in the Federal Register, are proposed to apply to calendar quarters beginning on or after October 1, 2023. Taxpayers may rely on these proposed regulations for such returns beginning on October 1, 2023, and before the date that a Treasury Decision published in the Federal Register adopts … Read More

The white-label service provider company applies invoice discounting to a third-party financing company. The financing company would offer 80% of the outstanding invoice to the white-label company. The Remaining 20% would be returned by the finance company to the white-label company upon receiving the full amount from the TV sets buyer. The finance business charges a discount fee (a percentage … Read More