Depreciation, on the other hand, would have a credit placed in the contra asset accumulated depreciation. Amortization is an accounting term used to describe the act of spreading the cost of a loan or intangible asset over a specified period with incremental monthly payments. This accounting function is to help companies cover their operating costs [...]
For example, when you write off an account receivable, make sure that the underlying aged accounts receivable report no longer contains the specific receivable that you wrote off. Therefore, individuals, self-employed, small corporations as well as large business firms can benefit from tax write-offs. But, it must be noted that everyone can not avail of [...]
In a perfect world, all your customers would pay on time — or even early — and you would have no need for accounts receivable aging. However, this is very rarely the case, and from time to time even the customers with the best track record for prompt payment could fall behind. For example, most [...]