Inventory valuation is a critical part of a company's financial reporting, and the ASC 210 Balance Sheet provides guidance on the recognition and presentation of assets and liabilities, including inventory. The Last-In, First-Out (LIFO) method is one of the most popular inventory valuation techniques, as it helps businesses save on taxes during times of rising prices. In this article, we will explore how the LIFO method works in the context of the ASC 210 Balance Sheet, and explain the associated journal entries.
Not-for-profit entities operate in a unique environment, relying heavily on contributions and grants to fund their mission and activities. One of the primary revenue sources for these organizations is the unconditional promise to give, which is governed by the ASC 958 accounting standard. In this article, we will delve into the accounting treatment for unconditional promises to give, providing examples of journal entries to help not-for-profit entities accurately record these transactions.
The ASC 840 Leases, a legacy accounting standard, provided guidance for lease accounting prior to the adoption of ASC 842. Under ASC 840, leases were classified as either operating or capital leases, with different accounting treatment for each category. In this article, we will focus on capital leases under ASC 840, explaining the criteria for classification, the accounting treatment, and providing examples of journal entries for a capital lease transaction.
ASC 310 Receivables, a financial accounting standard, provides guidance on the accounting treatment for receivables, including the estimation of an allowance for doubtful accounts. In this article, we will explore the concept of the allowance for doubtful accounts and explain the accounting treatment for related transactions, including journal entries.
ASC 460 Guarantees, formerly known as FASB Interpretation No. 45, is a financial accounting standard that provides guidance on the accounting treatment for guarantees. In this article, we will delve into the concept of a standby letter of credit (SLOC), a popular guarantee instrument, and explain the accounting treatment for SLOC transactions, including journal entries.