Tag Archives: recording payments
How to Handle Bad-Debt Write-Offs: the early stages – part 1
In the early stages, the bad debt accrual does not appear on the books, since we don’t know which accounts will go bad. To accommodate this need, some companies, espe-cially those that are audited, set up accounts based on aging categories or on a certain rate multiplied by sales. To set up such an account [...]
Posted in automated systems, economy, marketing, real estate
How to Make Entries to the Accounts Receivable: Recording Returned Merchandise
In most cases, merchandise returns involve four steps. First, the merchandise is checked against the invoice, inspected, and marked to be put back on the shelves. Second, the amount to be credited is verified. Third, credit is given to the customer returning the merchandise. Fourth, the amount of the credit is posted to the customer’s [...]
Posted in accounts recievable, automated systems, banking, ledgers
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Recent Posts
- Credit informational asymmetries
- Adverse selection in a loan model
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- Different degrees of loans subordination
- General fluctuations of credit spreads
- Investors require a premium for taking on credit risk
- Lagging indicators of credit quality
- Selection of your credit spread class
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