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Depreciation Expense and Accumulated Depreciation can be a hard concept for accounting students. It's easy to get confused or struggle to understand what goes where in a journal entry and to keep the...

One of the most confusing chapters in your first accounting class is the bad debts and allowance for doubtful (uncollectible) accounts chapter. Here, we will break it down step by step and provide...

For decades one man's name has appeared as author on scores of accounting textbooks. Who is this shadowy figure who makes accounting students cry? We investigate! (Who says we can't have fun with...

Learning accounting can be a challenge for even the strongest students. Explore these nine tips from an accounting professor on how to make getting an A in accounting much easier. Step 1:...

Although you do not need to know accounting to use QuickBooks, FreshBooks, Xero or other accounting software, knowing the basics of how accounting works can make using software easier and provide...

In accounting, Cost of Merchandise Sold is an account used to track the costs associated with the purchase of products for resale in a merchandising or retail business. Cost of Merchandise Sold does...

In accounting, Cost of Goods Sold is an account used to track the costs associated with the manufacture of a product, including cost of raw materials, direct labor, packaging, and other direct costs....

Inventory is an accounting of items owned by a business that will either be sold to customers or converted from raw materials into items that will be sold to customers. Inventory is an asset. It has...

Under the Percent of Sales Method for tracking bad debts, credit sales (not cash sales) are multiplied by a percent to arrive at the estimate for bad debts. That percentage will be based on the...

Under the Aging of Accounts Receivable Method for accounting for bad debts, a company creates an estimate of bad debts based on the age of outstanding invoices. This estimate is based on a company's...