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A contra account enables a company to report the original amount while also reporting the appropriate downward adjustment. A contra account is an account listed within a general ledger with the purpose of capturing the reduced value of a paired or related account when the two are added together. There are several situations in which a contra inventory account can be used.<\/p>\n<\/p>\n
The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University. A company receives rebates for advertising it does on behalf of brands it carries in its stores. For example, a grocery store displays advertisements for a national brand in its weekly flyer. The national brand gives the grocery store cash, reducing the overall cost of printing the flyer. Examples of deferred unearned revenue include prepaid https:\/\/dublinnews365.com\/bloomberg-announced-the-reduction-of-twitter-employees-in-dublin-and-singapore.html<\/a> subscriptions, rent, insurance or professional service fees.<\/p>\n<\/p>\nRecording Contra Assets<\/h2>\n<\/p>\n
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