If the dollar amount of supplies is significant, the amount of unused supplies as of the balance sheet date should be reported in the asset account Supplies or Supplies on Hand. The supplies that have been used during the accounting period should be reported in the income statement account [...] Continue Reading…

With regards to inventory, net realizable value (NRV) is the estimated selling price in the ordinary course of business minus any cost to complete and to sell the goods. NRV is one of the amounts considered when determining the lower of cost or market for items in inventory.

Net realizable [...] Continue Reading…

The term carrying amount is often used in place of book value. The carrying amount refers to the amounts that the company has on its books for an asset or a liability. For example, the carrying amount of a company’s truck is the cost of the truck minus the [...] Continue Reading…

A contra revenue account might be described as a revenue account that is expected to have a debit balance instead of the usual credit balance. (Its balance is contrary to—or opposite of—the usual credit balance for a revenue account.)

Another description of a contra revenue account is one that reduces [...] Continue Reading…

The trial balance is an internal document—it stays in the accounting department. It is a listing of all of the accounts in the general ledger (balance sheet accounts and income statement accounts) and their respective balances as of a specified point in time, such as June 30, 2006. The [...] Continue Reading…