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Would you please explain unearned income?

Under the accrual method, as the work is performed by XYZ, revenue is earned and recognized. In year 1, an entry would be made to recognize the revenue earned for the period by making a debit to deferred revenue of $20,000 and a credit to revenue. The accounting entry...

What is Reorder Point? Reorder Point Definition & Formula

If you’re dealing with a product that has a shelf life, you should consider changing safety stock levels to days rather than weeks. Establishing reorder points frees up crucial capital and ensures your business is operating at maximum efficiency across inbound and...

What is Post-dated Cheque and How to Write it

However, the recipient must trust that the writer of the check will have enough money in his or her bank account to cover the check value. In other words, a post dated check is a check that is validly written but can only be cashed as of the future date that you have...