Professional Documents
Culture Documents
books of account
CHAPTER 4
assets another.
m. Interest expense- cost of borrowing
EXPENSES
money
a. Cost of Sales (COGS)- represent n. Miscellaneous Expense- represent
the value of inventories that have various small expenditure which do
been sold not warrant separate presentation
b. Freight-out- sellers cost of o. Losses- expense which may or may
delivering goods to customers not arise from the ordinary course
c. Salaries Expense- salaries earned
NOTE:
by employee for the services they
have rendered. Earned – INCOME
d. Rent Expense- rentals that have Incurred – EXPENSE
been used up Unused – ASSET
e. Utilities Expense- cost of utilities Used - EXPENSE
that have been used
f. Supplies Expense- cost of supplies
that have been used
g. Bad debt Expense- amount of
estimated losses from uncollectible