19831985

AJ8888 Wrote:
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> Please clarify followings
> thanks
>
> 1. Is sinking fund related deposits are part of
> restricted cash?
> 2. Is Sales/cash discount account is contra
> account to revenue?

1. Yes.
2. Yes.

>
> 3. Is Bad debt expense a separate expenses account
> or it is contra sales account?

3. Contra AR.

> 4. When the actual (realized) bad debt expenses
> are less than anticipated (and recorded as
> Allowance for uncollectible) how is the gain
> recorded on Income statement? (is it by crediting
> the amount to bad debt expenses account or as a
> gain in other revenue?)

4. Yes. It is not a gain, it's credit to expenses.