Price to Tangible Book Value Definition
Deduct the liabilities from the assets and divide the same by the no of shares issued by the Company. The book value of a business is found by subtracting its total liabilities from its total assets. Generally, businesses are instead valued at market...
Adjusting Entry for Bad Debts Expense
For example, if 2% of your sales were uncollectible, you could set aside 2% of your sales in your ADA account. Let’s say you have a total of $50,000 in accounts receivable ($50,000 X 2%)....
Contra Asset
The allowance for doubtful accounts is a contra-asset account that is associated with accounts receivable and serves to reflect the true value of accounts receivable. The amount represents the value of accounts receivable that a company does not expe...