It is useful to note that from the perspective of the bank when the bank debits the company’s account, it means deducting. On the other hand, when the bank credits the company’s account, it means adding. If the credit balance is considered material, the company most likely will issue a refund to the customer instead of creating a debit memo. If a customer pays more than an invoiced amount, intentionally or not, the firm can choose to issue a debit

As time goes by, you may find yourself wanting to create a new line item for each transaction, but doing so could litter your company’s chart and make it difficult to navigate. Current liabilities are classified as any outstanding payments that are due within the year, while non-current or long-term liabilities are payments due more than a year from the date of the report. He frequently speaks at continuing education events.Charles consults with other CPA firms, assisting them with auditing