Bookkeeping

What is the allowance method?

What is the allowance method?

A company will debit bad debts expense and credit this allowance account. The allowance for doubtful accounts is a contra-asset account that nets against accounts receivable, which means that it reduces the total value of receivables when both balanc...
Trial Balance Definition

Trial Balance Definition

The trial balance is a type of financial report that is generated at the end of an accounting period, prior to the creation of your financial statements. Its main purpose is to allow you to catch any accounting errors and then make any necessary adju...
Capitalize definition

Capitalize definition

Just remember that once your private loans are paid off, you should start thinking about putting more money towards your federal loans. By this time you should be earning a higher salary and will be able to pay back more than the minimum. Recalculate...
Quarterly dictionary definition

Quarterly dictionary definition

One isn’t better than the other, but I’m VERY aware of the difference. Personally I prefer semi-monthly paychecks; bills, rent, etc are all monthly expenses, and the bi-weekly schedule for paychecks ensure they often don’t match up with incoming expe...
How to Claim Tax Deductions Without Receipts