An income statement is laid out with revenue as the top line item, followed by cost of sales and then gross profit. If you subtract cost of sales from revenue, you get your gross profit line item, which accounts for the revenue your company has earned minus the cost of…
When payment is received from the customer, another entry is made to update both cash and accounts receivable balances. The cash account is debited while accounts receivable are credited for an equal amount. Most people confuse accounts receivable with revenues since both come from the same transaction. As mentioned above,…
This letter can serve as a window into the past without placing an undue strain on the healing person’s mind, similar to a box of old photos. The letter acts as a time capsule, keeping these recollections out of the way in the brain and in physical space until they…
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