At the end of an accounting period, certain accounts are closed so they have a zero balance at the beginning of the new accounting period. The act of zeroing these accounts is called closing entries.

Accounts receivable is part of the current assets section of the balance sheet. It represents the total amount due from customers. If the company decides that a specific amount is an uncollectible bad ...

Understand adjusting entries for accounting purposes, how they are made and what they impact. Many, or all, of the products featured on this page are from our advertising partners who compensate us ...