In a typical manufacturing process, direct manufacturing costs include direct materials and direct labor. However, they may also include the cost of supplies that are directly used in production process, and any other direct expenses that don’t fall under direct materials and direct labor categories. Prime costs are calculated based on the direct labour costs […]
Bookkeeping
Return on Equity ROE Formula + Calculator
Common examples include accounts payable, short-term loans, dividends payable, notes payable, the current portion of long-term debt, accrued expenses, and unearned revenue income taxes payable. The process of calculating the return on equity (ROE) is relatively straightforward, as it divides net income by the average shareholders’ equity balance in the prior and current period. Tangible […]
Why isn’t the direct write off method of uncollectible accounts receivable the preferred method?
Suppose a business identifies an amount of 200 due from a customer as irrecoverable as the customer is no longer trading. If the amount is Bookkeeping for Consultants not collectible, it needs to be removed from the customers accounts receivable account, and this is achieved with the following direct write-off method journal entry. While the […]
