How to Do Petty Cash Accounting & Recording in 4 Steps
When a petty cash fund is in use, petty cash transactions are still recorded on financial statements. The journal entry for giving the custodian more cash is a debit to the petty cash fund and a credit to cash. Petty cash is a system that funds and t...
FIFO or LIFO Inventory Methods
Because the average cost is being re-calculated and is different for each transaction, this method is often referred to as a moving average. With a real-time system updating constantly, there are many advantages to the business owner. It is a proacti...
How to calculate inventory purchases
Because the average cost is being re-calculated and is different for each transaction, this method is often referred to as a moving average. During periods of inflation, LIFO shows the largest cost of goods sold of any of the costing methods because ...