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This depends on what caused the increase. Accounts receivable is the account used when a person or company owes YOU money. With an increase in AR, that means you either performed a service or sold goods to a person or company on account. Since this is an "increase" you will (ADD) the amount to your Account Receivable and Income (or Revenue).
Accounts receivable is not reflected in the income statement but the balance sheet. Sales, both cash and credit is.
When you accrue income, the debit is to a receivable account such as Accounts Receivable and the credit goes to the appropriate income account, such as Sales.
Accounts receivable
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No, A/R is a balance sheet account.
Accounts receivables are on the balance sheet. They are an asset of the firm, that is they represent a future economic benefit. The income statement holds the revenues and expenses of the business.
Customer invoices relate to the business as Recievables or income
When you report revenue, you will either increase cash or accounts receivable on the balance sheet depending on whether the cash was collected when earned.
Income statement only shows the transactions the benefit of which have already taken as in case of accounts receivable money is required to receive in future time that;s why it is an asset of company as the benefit of that cash is deffered for future time, that's why accounts receivable is shown in balance sheet of company.
If you can't collect a receivable, you have to write it off. Doing so means you credit the receivable on the balance sheet and debit the income statement with bad debt expense. This entry essentially reverses the initial entry which recognized the revenue and put the receivable on the balance sheet in the first place.
No. Because it is calculated as a percentage of accounts receivable or net income it will be variable.