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As discussed many, many times here; Charging off or Writing off a debt is a required accounting entry. It is how the one you stiffed, shows the asset it was to receive (the money you we're to pay), and it expected or had already recorded as income, will not happen, and instead it has an expense, or a loss.
It does not forgive the debt, relieve the debt, excuse the debt, say they won't try to continue collecting the debt, etc...it just says that it is a bad debt.
For the company doing the accounting, one of the points of charging off an account is to say it is no longer a productive asset.....so they cannot accrue interest on their books...because its to a dead beat and it can't reasonably be expected to be received. (Also, under many circumstances, they would have to pay taxes on just recording the accrual of interest they expect to earn. They wouldn't mind paying the tax, if they actually might earn something).
The one who owes, still gets charged interest on the debt they still owe. they also normally get charged all the costs incurred in collecting the debt. Accounting entries done by the one they owe money to does not change any of their obligations.
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∙ 16y ago
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Do you need to accrue for unpaid fixed asset?
If you purchased a fixed asset and you didn't pay for it all when you bought it, then you took on a debt liability. This does not accrue. It's there in full until it is paid off. Interest expense is recorded in its own account too. Interest accrues.
Which of these is a type of savings account that is designed to accrue interest for a specific period of time?
certificate of deposit
If something has been sent to collection can the collection agency charge you interest?
If the original creditor charged interest then the collection agency will continue to accrue interest at either your states legal rate or whatever you agreed to in the original contract until the debt is either paid or sold to another collection agency or placed with an attorneys firm for legal litigation.
If a department store fails to make the entry to accrue the finance charges due from customers?
interest revenue will be understated.
What does interest capitalization mean?
Capitalization occurs when your lender or loan servicer adds the amount of unpaid, accrued interest on your student loan to your loan balance. Once this interest has been capitalized, interest begins to accrue on that new, higher loan balance.
If a person dies can the credit card account still accrue interest?
No, it should not continue to accrue interest.
Interest will not accrue on your loans while you are in forbearance?
In the US, interest does not accrue on Subsidized stafford loans while in deferment. Interest does accrue at all times for unsubsidized stafford loans. Interest accrues on all loans while in forbearance.
How much do federal student loans cost?
That depends on what student loan you get. First off, there is usually a small service charge at the very beginning of withdrawing your loans (perhaps around $25). Then, the rest of the "costs" is the interest it that accrues. If you have a subsidized loan, interest is dependent upon when your loan is disbursed, and interest does not begin to accrue until 6 months after the last day of enrollment. If you have an unsubsidized loan, interest begins to accrue immediately, and currently is at around 6%.
A sentence using a word accrue?
Your money will accrue interest after leaving it in the bank for 12 months.
Do you need to accrue for unpaid fixed asset?
If you purchased a fixed asset and you didn't pay for it all when you bought it, then you took on a debt liability. This does not accrue. It's there in full until it is paid off. Interest expense is recorded in its own account too. Interest accrues.
If you take subsidised student loan and pay off before graduation do you have to pay interest for the money that you borrowed?
No, interest does not accrue on subsidized stafford loans while in school.
Can interest still accrue on a garnished credit card?
You bet it can ... The CC companies will continue to add interest at the specified rate until the balance is paid off in full.
If you borrow an Loan you are responsible for interest that accrues while you are in school?
In the US, you only accrue interest on the unsubsidized stafford loans that you receive, the subsidized stafford loans do not accrue interest while in school.
Should you turn off the utilities if you are moving?
Yes, especially if you rent. Otherwise charges can continue to accrue, as there is a base charge for most utilities, independent of the usage charge.
Do loans accrue interest while deferred?
Yes
Do life insurance policies accrue interest?
Whole life insurance can accrue interest. However, look at the charges associated with that type of insurance, and your outcome may be less.
Does interest accrue on credit card debt after card holder is deceased?
Interest does not accrue on credit card debt after the card holder is deceased. It can occur however, if the spouse is on the account.
