Author name: mmgja

If a customer pays more than an invoiced amount, intentionally or not, the firm can choose to issue a debit memo to offset the credit to eliminate the positive balance. If the credit balance is considered material, the company would most likely issue a refund to the customer instead of creating a debit memo. This

Let’s say you are trying to decide whether to sell some business assets. Doing a net of tax calculation for both years can show you which year might be the best, giving you the lower tax effect. The tax implications are different for married couples filing joint returns or for heads of households than they

That means direct cash for many, plus expanded unemployment benefits and new rules for things like filing your taxes and making retirement contributions. State and local governments received up to $150 billion in assistance through the new Coronavirus Relief Fund. Of that, $3 billion was reserved for federally administered territories and $8 billion for tribal

It is recorded as a liability because the company still has an outstanding obligation to provide these goods or services. Deferred https://www.bookstime.com/ revenue is recorded as such because it’s money that hasn’t yet been earned. The accountant records the amount as a debit entry to the cash and cash equivalent account and as a credit