Straight Line

Depre Exp = Cost - Salvage Value / Usefull life

AJE

Depreciation Expense

Accumulated Dep

Unit Production

Depre Exp =(Number of units produced)/(Life in number of units)× (Cost-Salvage Value)

Double Declining

Depre Exp=Beginning book value ×rate of depreciation

Rate of depre= 1/(useful life)×2

Sum of the Years Digit

Depre Exp= (Remaining life)/SYD×(Cost×Salvage value)

SYD = 1+2+3+4

Bad Dept Expense

Percentage of sales

Percentage od AR

AJE

Bad Dept Expense

Allowance For Bad Dept

Defferals

Expenses - Prepayment

Revenues – Unearned Income

Accruals

occurs before a payment or receipts

 Is Incurring the expenses and earning the revenues without paying or receiving cash

Defferals

Occurs afterrr a payment or receipt

Is paying or receiving cash In advance without incurring the expenses or earning the revenue

Real Accounts

Permanent accounts – Balance sheet

Nominal Accounts

Temporary account – Income statement

Mixed Accounts Adjust

Real Account Nominal Account

Prepayment Asset Expense

Unearned income Liability Income

Prepayments