Inspection Fee Accounting Entry
What Is Inspection Fee In Accounting Inspection fee is paid to certified inspector for inspecting or checking, assessing and evaluating the goods or services and a process in order to control the activities of the organization. Inspection Fee Is What Type Of Account For the company paying inspection fee it is an expense and the company receiving it, it is a revenue for its business. Inspection fee is a Temporary Account which is closed to Income Summary Account at the end of the accounting period. It is shown on Income Statement for the period. As it does not have a balance in its T Account i.e., it is not a Permanent Account , so it is not recorded in the Balance Sheet or Statement of Financial Position. Like other Expenses , the normal or usual / positive balance of inspection fee is debit and in case of closing entry it is credited which is unfavorable or negative balance for it. If inspection fee is an income, then its normal balance on credit side but negative balanc...
