the asset method = record all purchases as asset then recognize expense (diff of beg bal & end bal) dr. prepaid supply (purchase) cr. cash expense method = record all purchases as expense, then account for the ending balance. adjust beg balance to reflect end balance. dr. supply expense cr. cash
Adjusted balance method APEX
The percent of sales method
Under the allowance method, bad debt expense is debited in the same accounting period when sales are recognized. This approach estimates uncollectible accounts based on historical data and trends, allowing businesses to match expenses with the revenues they generate. The allowance for doubtful accounts is then adjusted to reflect these estimated bad debts, ensuring that the financial statements present a more accurate picture of expected collectible amounts.
Adjusted Balance Method
the asset method = record all purchases as asset then recognize expense (diff of beg bal & end bal) dr. prepaid supply (purchase) cr. cash expense method = record all purchases as expense, then account for the ending balance. adjust beg balance to reflect end balance. dr. supply expense cr. cash
Adjusted balance method APEX
adjusted selling price method , retail price of the inventory is calculated and marjinal profit is deducted from it generally used in retail business also known as Retail inventory method
Depreciation Expense
The percent of sales method
Under the allowance method, bad debt expense is debited in the same accounting period when sales are recognized. This approach estimates uncollectible accounts based on historical data and trends, allowing businesses to match expenses with the revenues they generate. The allowance for doubtful accounts is then adjusted to reflect these estimated bad debts, ensuring that the financial statements present a more accurate picture of expected collectible amounts.
Adjusted Balance Method
Adjusted
Units-of-production
It is depreciation. Depreciation, or cost recovery, is a method of taking the cost of an item as an expense over its usefull life.
Adjusted
adjusted balance method ; apex