What are Income Accounts in accounting?

The contribution margin format allows the company’s executives to see the relative profitability of its products or other segments. Seeing how profits will change when the volumes increase or decrease may be valuable. Two examples are (1) the cost of making and selling one or more additional units of product, and (2) the cost of […]

What is a purchase journal

For example, the debit relating to a purchase of office supplies would be to the supplies expense account. Entries from the purchase returns and allowances journal are posted to the accounts payable subsidiary ledger and general ledger. To understand the Purchase Journal, it’s essential to grasp its fundamental purpose. This journal captures critical details about […]