Bookkeeping

If a company experiences difficulty collecting accounts, as evidenced by the accounts receivable aging report, problem customers may be required to do business on a cash-only basis. Therefore, the aging report is helpful in laying out credit and selling practices. This is different from the last journal entry, where bad debt was estimated at $58,097. That […]

To calculate RE, the beginning RE balance is added to the net income or reduced by a net loss and then dividend payouts are subtracted. A summary report called a statement of retained earnings is also maintained, outlining the changes in RE for a specific period. The income summary is a temporary account used to