Question

In the United States alone, $16 billion of products and services are traded every year without any money changing hands in a practice referred to as

Answer 1

In the United States alone, $16 billion of products and services are traded every year without any money changing hands in a practice referred to as Barter transactions account .

• A barter exchange account is handled as an asset account and the revenue from bartering is treated as income in a typical journal entry.
• In the aforementioned scenario, barter income would be credited with $100 and the barter exchange account would be debited with $100.

• A barter exchange is a group of people or businesses that have decided to swap goods or services without taking payment in cash.
• Disadvantages are that bartering frequently requires much time and hassle and that goods are often not readily divisible, meaning that swapped goods have to be basically equal in value if a trade is to occur.

What are barter accounts?

• A barter exchange operates as a broker and bank in which each participating member has an account that is debited when purchases are made, and credited when sales are made.
• Compared to one-to-one bartering, concerns over unequal exchanges are reduced in a barter exchange.

Learn more about barter accounts brainly.com/question/23967562

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