Understanding Accounting and Black Friday

Every year people in America rush to retail stores the day after Thanksgiving in order to pick up the season’s hottest items on sale. Christmas shopping has begun and this favorite day is known as ‘Black Friday.’

Many retailers did not approve of the term Black Friday being used for this day because they felt it was negative. A different theory started circulating in the early ’80s that retailers had no financial gain from the first month of the year, January, through the eleventh month of the year, November but their gain came from Black Friday to the holiday season. As this was recorded using accounting practices, red ink would be used to show amounts in the negative whereas black ink would be used to show amounts in the positive. theory. http://ow.ly/V1Erm http://ow.ly/i/eInaV