The postage expense account is classified as an expense account. Expenses represent costs incurred in the course of business operations, and postage is an essential part of that in order to send correspondence or packages.
When it comes to accounting, an increase in an expense account, like postage expense, is recorded with a debit. So, if you incur postage costs, you would debit the postage expense account to reflect that expense. In contrast, a credit would decrease the expense account. Therefore, for postage expense:
- Type: Expense Account
- Increase: Debit
- Decrease: Credit
This means that whenever you pay for postage, it effectively reduces your overall profit since it is an expense incurred; thus tracking expenses accurately is critical for financial reporting.