How to Record Warranty Liability Journal Entry?

What is a Warranty? A warranty is a promise from the product’s maker that the product will perform as promised. If it doesn’t, the manufacturer will fix it at no charge to the consumer. The majority of warranties are restricted since they do not cover damage caused by accidents, abuse, or other non-defective issues. Some … Read more

What is the Journal Entry for Freight In and Out?

Freight-In When a company, as the buyer, is required to pay for the transportation of products purchased from suppliers, freight-in costs are incurred. Similarly, suppose the firm utilizes the perpetual inventory system. In that case, the company must record a journal entry for freight-in by recognizing this expense as a component of goods inventory or … Read more

What is The Journal Entry for Discount Allowed?

Discounts are persistent in today’s corporate world. They are usually given in exchange for some consideration, ranging from prompt payment to market rivalry. The “Discount Allowed Account” is debited when a journal entry for a discount is posted. The discount allowed is a business expense that is recorded on the debit side of the profit … Read more

Bank Overdraft Journal Entry with Example

Overview Bank overdrafts is a popular feature of bank facilities that allow you to spend more than you have in your account. This is known as an “overdraft facility” and can be helpful if you need to make an urgent purchase that isn’t covered by your current balance. However, overdrafts come with fees and interest … Read more

Discount Allowed Journal Entry with Example

Overview of Discounts Allowed A company may offer clients a discount if they pay their bills on time in business. When clients take advantage of the discount by making an early payment, the company must account for it with an appropriate journal entry. Because the company records the total amount as sales income when a … Read more

DISCOUNT ALLOWED: JOURNAL ENTRY AND EXAMPLES

No doubt, selling products and services is the mainstream of revenue for businesses of all sizes. These businesses allow their customers to avail of discounts if they make early payments or pay the full amount upfront. Discounts allowed work like a charm in order to boost their sales, increase brand awareness, receive quick & early … Read more