The Of Public Service Coof North Carolina - Investor Relations
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You pay them to come to your house and perform services. You don't get a physical item from a yard care business. Considering that service companies do not really sell items, they don't generally bring stock on their balance sheets since they do not own any. Accounting for This Author is simpler than retailers due to the fact that no stock requires to be tracked and no charge of items sold needs to be calculated.
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When an attorney expenses a client for his/her services he tape-records the sale with a debit to balance dues and a credit to service income. As soon as the customer pays his bill, the attorney debits money and credits the receivables account. Service earnings is reported on the earnings declaration just like sales income for a retailer.
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