With accounting the gross method is a bookkeeping tool where both revenue or proceeds along with the associated costs are recorded separately as entries in the journals. See the net method for the alternative.
Tolerating non-payment is simply a part of doing business. To assist in measuring this dollar value, the accountant must estimate bad debts. This is the fifth part in the series of bookkeeping estimates within the advanced skills section of bookkeeping.
In accounting sometimes an extraordinary event occurs. When this happens the associated revenue and expense is recorded in the expense type of accounts. There are two different methods used to record this transaction – gross or net.
