Some companies find that offering incentives to credit customers can help encourage early payments, increasing cash flow and reducing the risk of bad debt. A sales discount is one incentive that many ...

Companies report their accounts receivable in the balance sheet based on accounting sales records. Companies might engage in credit sales to allow customers to buy on accounts and record revenue in ...

Accounting practices in the U.S. have improved over the years, but there are still plenty of ways that companies can manipulate their financial results. And not just in the usual ways--the balance ...

When it comes to building out a balance sheet, an organization’s accounts payable come into play. As you work through a balance sheet, you’ll need to determine whether accounts payable are an asset or ...

A balance sheet is a financial document that presents the financial status of a business through an accounting of a company’s assets, liabilities, and equity. A balance sheet, when looked at with a ...

Contra accounts adjust asset values, like equipment depreciation reducing fixed assets. Increased allowance for doubtful accounts may signal rising uncollectable receivables. Companies use contra ...

Every business has some dead accounts receivable on its books. Reviving them might not be worth the effort but managing them might be. Any business that lets past-due accounts receivable accumulate is ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. Debt that cannot ...