Inventory Methods

The commonly used inventory methods are FIFO (First-In, First-Out), LIFO (Last-In, First-Out) and Weighted Average. When calculating inventory and cost of goods sold, there are two truths that will always hold. The total goods available for sale is equal to the sum of...

Inventory Accounting

Inventory is the merchandise or supplies on hand or in transit at a particular point in time. The three types of inventory for a manufacturing company are raw materials, work-in- process, and finished goods. Included in the inventory are: goods in transit for which...

Note Receivable

Note receivable is a written promise to receive money at a future date, comprising principal and usually interest. Depending on whether the note is for 1 year or less, it can be classified as either a current or a noncurrent asset. In other words, note receivable...

Uncollectible Accounts

Uncollectible accounts receivable are the accounts receivable that a company cannot collect. When the conclusion is reached that a receivable is not collectible, that amount is written off, or removed from the company’s books. Since that sale was originally...

Accounts Receivable Examples

Accounts receivable definition: amounts due the company on account from customers who have bought merchandise or received services. Accounts receivable are presented as a current asset in the balance sheet. This means accounts receivable arise when a business makes...

Accounting Terms

Accounting terms for dummies, student, bookkeeper, accountant or any business person who need to understand the definitions in order to perform his or her functions in the business world. Often, many bookkeeping terms or accounting terminology have distinctly...