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Accounting & Bookkeeping & Small Business Forum
Accounting, Bookkeeping, Marketing, and Small Business Resource
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Guest
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| Posted: Fri Nov 19, 2004 6:32 am Post subject: accrued expenses |
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| We had some expenses that were accrued and never billed. I feel the business is going to be sold soon and I need some insight as to what to do with the accrued expenses. |
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Guest
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| Posted: Fri Nov 19, 2004 8:57 am Post subject: RE: accrued expenses |
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| If they are set up as a payable, then it depends upon what will happen with the liability. If it will be assumed by the new owner, then it will be extinguished as part of the sale, and increase the capital gain on the owner's books. If the expenses will be forgiven by the vendor, then they should be recorded as income, or the accrual reversed. |
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