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Accounts receivable also known as Debtors, is the money owed to a business by its clients (customers) and reported as an asset in balance sheet.
Notes Payable is a liability, so it would normally have a credit balance. Accounts Receivable is an asset which would normally have a debit balance.
The allowance for doubtful accounts is a reduction to the accounts receivable. This is a contra account, similar to accumulated depreciation.
the schedule of accounts receivable shows
Accounts receivable in an asset account and normally maintains a debit balance. So the answer is Yes.
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Accounts receivable shown in balance sheet at assets side under current assets section.
Accounts receivable also known as Debtors, is the money owed to a business by its clients (customers) and reported as an asset in balance sheet.
Notes Payable is a liability, so it would normally have a credit balance. Accounts Receivable is an asset which would normally have a debit balance.
The allowance for doubtful accounts is a reduction to the accounts receivable. This is a contra account, similar to accumulated depreciation.
the schedule of accounts receivable shows
the schedule of accounts receivable shows
the formula of calculating account receivable turnover = Net Sales/ average gross receivable
It is basically deducting the allowance for doubtful accounts from the total accounts receivable.
For calculating accounts receivable balance we need accounts receivable turnover rate So Accounts receivable turnover rate = number of days in year/annual sales outstanding accounts receivable turnover rate = 360/40 = 9 Accounts receivable balance = 7300000/9 Accounts receivable balance = 811111
Net Sales / Average Accounts Receivable = Account Receivable Turnover