#journal-entries
Master journal entry creation and accounting transactions
Gift card breakage is the value customers never redeem. Under ASC 606, the proportionate method recognizes breakage revenue alongside redemptions—but state escheatment laws can override your right to keep the money.
A practical guide for small retailers and warehouses to compute their shrink rate, design an ABC-based cycle count program, book shrinkage adjustments to the ledger, and turn variance patterns into loss-prevention action.
Inventory shrinkage is the gap between recorded and physical stock. This guide explains how to calculate a shrink rate, why cycle counting and ABC analysis beat the annual physical count, and how to record the adjustment with a dedicated expense account.
A practical walkthrough of the LCNRV rule under ASC 330 — how to calculate net realizable value, book the write-down, handle obsolete or damaged inventory, and avoid the phantom-profit trap of overstated inventory on the balance sheet.
Opening Balance Equity is a temporary account that should read $0.00 once setup is done. Learn what it means, how to set up books mid-year from a trial
Opening Balance Equity is the suspense account accounting software creates to keep the balance sheet in balance during migration. Build a supportable opening trial balance, reconcile every account at the cutover date, then journal OBE into Retained Earnings, Owner's Capital, or Common Stock and Additional Paid-in Capital based on entity type.
Sales tax you collect belongs to the state, not your revenue line. Here are the journal entries, the month-end reconciliation routine, and the multi-state economic nexus rules that keep your books audit-ready.
Sales returns and allowances are contra-revenue, not expenses. This guide shows the journal entries, ASC 606 refund liability and right-of-return asset, and how to estimate returns at period-end so net sales and gross margin stay honest.
A walkthrough of how to record sales returns, allowances, and discounts as contra-revenue accounts under ASC 606, including the refund liability journal entries, sales tax reversal, and the gross-margin effects most small businesses miss.
A suspense account is a temporary ledger account that holds an unidentified transaction or an unexplained trial-balance difference so the month-end close can finish on time. This guide covers when to use one, how to record and clear the entries, and how it differs from a clearing account.
The allowance for doubtful accounts estimates uncollectible receivables. Learn the aging and percentage-of-sales methods, plus how write-offs keep accounts
ASC 410-20 requires recording an ARO on day one—when drilling, erecting, or build-out finishes.
