Sales discount indicates a discount that is offered to the customers for various reasons that include early payment for the credit purchases made by...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts can answer ...
(The taxes withheld from employees are not an expense of the company that withheld them.) The payroll taxes that are not withheld from employees are expenses of the employer and are liabilities until the amounts are remitted. Examples include the employer’s portion of the FICA tax and ...
Definition:An expense is the cost of an asset used by a company in its operations to produce revenues. In other words, an expense is the use of assets to create sales. Notice that I didn’t say it’s the amount of money spent to generate sales. Expenses are created when an asset is...
It is also possible that some accounts may never be paid in full. This consideration is reflected in an allowance for doubtful accounts, which is subtracted from accounts receivable. If an account is never collected, it is written down as a bad debt expense, and such entries are not consider...
When the sales taxes are remitted to the state, the merchant will debit Sales Tax Payable. Related Questions How do I calculate the amount of sales tax that is included in total receipts? What is net sales? Are the sales taxes part of a retailer's sales? Is sales tax an expense ...
Below, we’ll explain the main categories of expenses, how they are recorded in accounting, and how they affect an income statement. What’s in this article? What are the main categories of expenses? How are expenses recorded in accounting? Why is accurate expense tracking important? What is...
An important reason to include agency costs in your business is to help you budget your cash flow. There are three main reasons why a business owner would want to control their agency costs. A business owner may want to attract, keep and increase sales to their business. If the cost of ...
To capitalize a cost means? a. to debit an expense account. b. to depreciate an asset. c. to debit an asset account. d. to omit the cost from consideration. In accounting, how do you account for gain on sale of asset? Is sales tax considered an asset in accounting?
I’ve also found them useful as an individual salesperson to take stock of my pipeline, assess quota attainment, and estimate commissions for a given pay period. I know the practice of projecting sales may seem fraught with uncertainty because you’re trying to estimate revenue generated from ...
Expenses, on the other hand, are displayed on a company’sincome statementto conveynet incomefor a given period. An example of an expense transaction would be any cost incurred while a salesperson is attempting to generate revenue on a networking trip. These expenses may include lodging, client...