![]() An asset would have the prefix of 1 and an expense would have a prefix of 5. What does that mean Is it a prepaid asset or an expense that was paid out The bookkeeper would be able to tell the difference by the account number. Prepaid expenses are expenses paid in advance for goods or services that will be received in the future. The longer you hold on to the money order, there's a chance it can be lost, damaged, or misplaced. An account might simply be named insurance offset. You do not need more than one line for the Deferral. Include the date of the intended activity in the Explanation field. Must include the date the goods/services were received, vendor name, purchase order number or invoice number. Plan to cash your money order in a timely fashion Enter a reversal date in the AVAE document (greater or equal to 7/20/200X). If you're cashing with a bank or credit union where you're an account holder, you might not have to pay fees at all, and you also might be able to skirt the fees by cashing a USPS money order at a USPS location. Going directly to the issuer is also a way to verify the money order. Refresh knowledge gained in an accounting program. Build familiarity with accounting essentials prior to commencing studies. Reviewed by Ebony Howard What Is Prepayment Prepayment is an accounting term for the settlement of a debt or installment loan in advance of its official due date. If you go directly to the place that issued your money order (again, that could be a place like Western Union, Moneygram, or Walmart) you might be able to minimize your fees. Gauge interest in a potential accounting career before applying to programs. ![]() (Advance Salary Paid For the Month) At the end of accounting period, when the company actually receives the services, then Prepaid Salary Account is credited and Salary Expense Account is debited. Buyer Perspective From the perspective of the buyer, a prepayment is recorded as a debit to the prepaid expenses account and a credit to the cash account. However, at other locations, you might have to pay a fee. In the first case, the Journal Entry is as shown below: Prepaid Salary a/c XXX. Accounting for Prepayments We will address the accounting for prepayments from the perspectives of both the buyer and the seller. If you receive a USPS money order, you can cash it out for free. Many consumers send money orders from the United States Post Office, and a local post office will cash USPS money orders.īring your money order to a location that will cash it. ![]() Many retail locations have a money transfer outlet like Moneygram or Western Union counter to make the process convenient. Cash and cash equivalents refers to the line item on the balance sheet that reports the value of a companys assets that are cash or can be converted into cash immediately.
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