• admin
• August 16, 2023
• Bookkeeping
• 0 Comments

Incremental cost specifically tells business owners about the worthiness of allocating additional resources for a new production volume. Economies of scale show that companies with efficient and high production capacity can lower their costs, but this is not always the case. Some ventures waste time and resources, and calculating the incremental cost versus projected sales at a particular volume avoids …

• admin
• September 13, 2021
• Bookkeeping
• 0 Comments

For example, going back to the example above, say your customer called after getting the bill and asked for a 5% discount. If you granted the discount, you could post an adjusting journal entry to reduce accounts receivable and revenue by $250 (5% of $5,000). Adjusting entries are changes to journal entries you’ve already recorded. Accrued rent is the opposite …

• admin
• April 14, 2021
• Bookkeeping
• 0 Comments

On July 1st, the company will reverse this entry (debit to Accrued Payables, credit to Utility Expense). Then, the company theoretically pays the invoice in July, the entry (debit to Utility Expense, credit to cash) will offset the two entries to Utility Expense in July. Accrued expenses are not meant to be permanent; they are meant to be temporary records …