Category: Bookkeeping

Direct Write-Off Method

The term write-off may also be used loosely to explain something that reduces taxable income. As such, deductions, credits, and expenses overall may be referred to as write-offs. Financial institutions use write-off accounts when they have exhausted all methods of collection action. Write-offs may be tracked closely with an institution’s loan loss reserves, which is […]
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Journal Entry for Cash Shortage Overage

The customer unwittingly gave me $96 for the purchase, an error we both failed to catch. The accounting system will show $95 in posted sales but $96 of collected cash. The journal entry for this sale would debit cash for $96, credit sales for $95, and credit cash over short for $1. Over and short—often […]
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Bookkeeping Basics For Independent Contractors

You’ll get a strong sense of how much value you get for each dollar you spend per vendor, empowering you to make smart spending decisions. You should also look for platforms through which you can add your branding to all these documents. This way, you achieve visual consistency across all your invoices, quotes and estimates […]
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