Accounting Flashcards
Asset Account
Debit
Liability Account
Credit
Capital Account
Credit
Revenue Account
Credit
Drawings Account
Debit
Expense Account
Debit
Accrued Revenue
Provide service before payment.
Long term contracts
Accrued Revenue Adjustment
Debit Accounts Receivable (increase) Credit Revenue (decrease)
Accrued Expense
Expense incurred before payment
Wages - pay cycle doesn’t correspond with accounting cycle
Accrued Expense Adjustment
Debit Expense account (increase)
Credit Liability payable account (increase)
Deferred/Unearned Revenue
Payment received before services provided
Down payment on a dress, unearned rent
Deferred (Unearned) Revenue Adjustment
Debit Liability/Payable account (decrease)
Credit Revenue account (increase)
Deferred (Prepaid) Expenses
Expense is paid for before it’s incurred (used).
Prepaid Expenses (Insurance, taxes, etc.) Supplies
Deferred (Prepaid) Expense Adjustment
Debit Expense (increase) Credit Asset (decrease)
A balance in the unearned subscriptions account after adjusting entries are made represents a __________.
deferral
Net Realizable Value (formula)
Accounts Receivable - Allowance for Doubtful Accounts
Interest (formula)
Principle X Rate X Time (days/360)
Accounts Receivable Turnover (formula)
Sales / Average Accounts Receivable
Days’ Sales in Receivables (formula)
Average Accounts Receivable / Average Daily Sales
Estimated Bad Debt Expense (formula)
Credit Sales X % Bad Debt
Name the 3 types of receivables.
Accounts Receivables
Notes Receivables
Other Receivables