Fill in the Blanks DiBIT_U10_W21_Activity 1Online version DiBIT_U10_W21_Activity 1 by Educaplay 2 1 Balance erosion crediting depreciation line worthless depletion Reducing asset eliminated Straight credit accruals higher revenues debiting Various adjustments have to be made for financial statements in order to conform with the concept . Adjusting entries aim to match the for an accounting period with the expenses used to generate them . In concern with non - current assets , is such an important adjustment . Wear and tear , obsolesce , and are some of the common reasons due to which require us to do depreciate non - current assets . - and method are the two most commonly used methods to calculate depreciation and the depreciation charge under the Reducing Balance method is usually than the depreciation charge under Straight - line method . Bad debts are a phenomenon business has to face as a result of selling on . When a debt is found to be ? bad' , the as shown by the debt in the debtor ? s account is . It must be from the account . This is done by the debtor's account to cancel the asset and increasing the expense account of bad debts by it there .
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