They are permanent accounts, like most accounts on a company’s balance sheet. The doubtful accounts will be reflected on the company’s next balance sheet, as a separate line. Allowance for doubtful is the contra asset account with accounts receivable which present in the balance sheet. This method looks at how overdue the invoices are. For […]

How does a company improve its gross margin? At the end of last year, the gross margin hovered around 50%, making companies with a gross margin of less than 25% poor performing. Such wide variations in gross margin make comparisons outside of an industry meaningless to organizations within the industry. For example, technology companies show […]