Accounting for write off a Company’s car (Explanation, Example, and Journal Entries)

The write-off is one of the most renowned accounting treatments, but most of us don’t know the exact cause of bringing things into this treatment.  If an asset has no worth, it should be written off. Consider on the off chance that a resource’s worth perseveringly reduces and is diminished to nothing; it will become

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What is Contract Liability? (Definition, Example, Calculation, and Classification)

Definition of a Contract Liability Contract Liabilities are also referred to as deferred or unearned revenue. A contract liability is basically an obligation on the part of the entity to transfer goods and services to a given customer for which the entity has already received consideration from the customer. In other words, contract liability is

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What is a Contract Asset? (Definition, Example, Calculation, and Classification)

Definition of a Contract Asset Contract Asset can be defined as an entity’s right to consideration in exchange for goods and services that the entity transfers to a customer, particularly in the case when the right is conditioned on something other than the passage of time. Therefore, this implies that contract asset is created in

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How to Write-off Accounts Receivable? ( Example and Journal Entries)

During the normal course of business, it is regular for businesses to sell goods on credit. When businesses sell on credit, they create Accounts Receivables, which include all the details regarding the amount that is due from customers. Normally, customers do pay back their dues. However, there are instances where a customer defaults and is

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