ACCRUALS

ACCRUED EXPENSES
adjusting entry:
Expense Account xxx
Accrued Expense Account/ Expense Payable xxx

DEFERRALS
PREPAYMENT
ASSET METHOD:

ORIGINAL ENTRY:
Prepaid Expense Account xxx
Cash xxx

ADJUSTING ENTRY:
Expense Account xxx
Prepaid Expense Account xxx
note: the recorded amount in adjusting is expired portion

EXPENSE METHOD:

ORIGINAL ENTRY:
Expense Account xxx
Cash xxx

ADJUSTING ENTRY:
Prepaid Expense Account xxx
Expense Account xxx
note: the recorded amount in adjusting is unexpired portion

DEPRECIATION
COMPUTATION: ADJUSTING ENTRY

COST - SALVAGE VALUE

USEFUL LIFE

DOUBTFUL ACCOUNTS
BASED ON SALES ON ACCOUNT ADJUSTING ENTRY
COMPUTATION: Allowance Method
SALES ON ACCOUNT X RATE = DOUBTFUL ACCOUNTS EXPENSE
 Direct write off
BASED ON A/R
COMPUTATION:
A/R X RATE = ALLOWANCE FOR DOUBTFUL ACCOUNTS, ending

Allowance for doubtful accounts end - allowance for doubtful account begening = doubtful accounts expense
 ACCRUALS
ACCRUED REVENUES
adjusting entry:
Accrued Revenue Account/ Revenue Account Receivable xxx
Income Account xxx

DEFERRALS
PRECOLLECTION
LIABILITY METHOD:

ORIGINAL ENTRY:
Cash xxx
Unearned Income Account xxx

ADJUSTING ENTRY:
Unearned Income Account xxx
Income Account xxx
note: the recorded amount in adjusting is the earned portion

INCOME METHOD

ORIGINAL ENTRY:
Cash xxx
Income Account xxx

ADJUSTING ENTRY:
Income Account xxx
Unearned Income Account xxx
note: the recorded amount in adjusting is unearned portion

DEPRECIATION
JUSTING ENTRY
Depreciation Expense xxx
Accumulated Depreciation xxx

DOUBTFUL ACCOUNTS
JUSTING ENTRY
wance Method DOUBTDUL ACCOUNTS EXPENSE XXX
ALLOWANCE FOR DOUBTFUL ACCOUNTS XXX
 DOUBTDUL ACCOUNTS EXPENSE XXX
A/R XXX
0

nts expense