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How to write over company record

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hey how you doing thanks for coming by I can take you the federal courthouse right up here on First Avenue a few blocks yeah thank you great you know Im going to the federal courthouse to be at a hearing concerning a clients music company which reminds me that we get a lot of enquiries about how to start a record label how do you start an independent record label there are a few things you should do right right from the beginning like for example you want to set up a company itll only cost you a couple hundred bucks maybe a few hundred bucks and then youll have insulation from your own personal possessions they cant be docHubed by somebody that may want to make trouble for your company and you also sound a lot more professional if youre coming at distributors music distributors or major labels with an LLC or an i NC after the name of your company it just makes you look a lot more real the second thing you want to do is make sure that youve signed your artists your artists are go

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How is an overage recorded?

The account Cash Short or Over will be debited for shortages and credited for overages. Depending on the balance accumulated at the end of the year, it will be recorded as an expense on the income statement (if a net shortage) or a revenue on the income statement (if a net overage.)

What is the difference between write-down and write-off?

A write-down reduces the value of an asset for tax and accounting purposes, but the asset still remains some value. A write-off negates all present and future value of an asset. It reduces its value to zero.

In what account is the cash overage recorded?

The cash over and short account is an expense account, and so is usually aggregated into the other expenses line item in the income statement. The balance in the account tends to be quite small.

Do write-offs affect net income?

Under the direct write-off method, bad debt expense serves as a direct loss from uncollectibles, which ultimately goes against revenues, lowering your net income.

What is the journal entry for petty cash overage?

If theres a shortage or overage, a journal line entry is recorded to an over/short account. If the petty cash fund is over, a credit is entered to represent a gain. If the petty cash fund is short, a debit is entered to represent a loss. The over or short account is used to force-balance the fund upon reconciliation.

What is meant by write-off in accounting?

What Is a Write-Off? A write-off is an accounting action that reduces the value of an asset while simultaneously debiting a liabilities account. It is primarily used in its most literal sense by businesses seeking to account for unpaid loan obligations, unpaid receivables, or losses on stored inventory.

How are cash overages reported on the financial statements?

If we have an overage of cash, we record the overage as a credit, and this has the same impact as if we are recording revenue. If there were cash overage, the petty cash account would be debited and the cash over and short account would be credited.

What is the appropriate entry to record cash overage?

Debit your cash short and over account in your journal entry by the amount of cash short. This represents an expense. Alternatively, credit your cash short and over account by the amount of cash over. This represents a revenue.

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