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Sales Discount Journal Entry

What is a Sales Discount? Sales Discount is referred to as a discount that is extended to the customer in order to incentivize him to pay the amount early. The slight deduction from the total bill depending on timely payment acts as a motivator for the debtors of the...

What is a Stale Check?

Definition: A Stale Check is defined as a check that is presented to the bank after a considerable amount of time from the date that has been mentioned on the check. The date timeline in this regard is mostly of a duration of 6 months or more. While the bank might not...

Accrued expense journal entry

Introduction The term “accrued” means “accumulate” or “increase”. As such accrued liabilities mean that the unpaid bills issued to the company are increasing. When the expenses are made by customers, they don’t make cash payments every time. Despite payments being not...

Deferred revenue journal entry

Do customers pay for the goods or services purchased before delivering them? The answer is big YES. If so, the need for knowing about deferred revenue arises. In common parlance, it is called unearned revenue. The revenue becomes unearned when the company receives...

Prepaid expenses journal entry

Introduction  Sometimes the companies pay for the expenses in advance before the expenses become due. This may be due to some discount being offered or longer subscription or validity being offered. They haven’t been recorded by the company as an expense, but have...