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Is a refund to customer on the credit side of recivable ledger control account?
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When a customer pays on their account is it a credit or a debit to the customers account?
debit a/r credit cash
When creating a credit account for a customer you need request?
Credit references
When creating a credit account for a customer you need to request?
Credit references
When does accounts receivable have a credit balance?
If an account has a credit balance the customer must have overpaid on their account or a credit was issued by the company and posted to the customers account, resulting in a credit or negative balance.
What is the difference between a Debit and a Credit as it relates to Accounts Receivable?
Accounts Receivable is an account that holds what a person or company owes your business. For example you sold a computer to a customer on credit, this credit is listed in an Accounts Receivable and is an asset.Asset accounts maintain a Debit Balance, meaning that a debit to the account will increase the account (in other words increase the amount the customer owes the company).A credit to the account will decrease the balance of that account (in other words, it records payment or credit to that customers account and decreases the amount the customer owes the company).
When a customer pays on their account is it a credit or a debit to the customers account?
debit a/r credit cash
When creating a credit account for a customer you need to request?
Credit references
When creating a credit account for a customer you need request?
Credit references
When does accounts receivable have a credit balance?
If an account has a credit balance the customer must have overpaid on their account or a credit was issued by the company and posted to the customers account, resulting in a credit or negative balance.
What is the difference between a Debit and a Credit as it relates to Accounts Receivable?
Accounts Receivable is an account that holds what a person or company owes your business. For example you sold a computer to a customer on credit, this credit is listed in an Accounts Receivable and is an asset.Asset accounts maintain a Debit Balance, meaning that a debit to the account will increase the account (in other words increase the amount the customer owes the company).A credit to the account will decrease the balance of that account (in other words, it records payment or credit to that customers account and decreases the amount the customer owes the company).
What needs to happen when a customer pays their account in account receivables?
debit revenue and credit receibables
What is the journal entry to write off customer accounts?
You would credit the customer account and debit bad debt.
A claim against a customer for sales made on credit is an account payable?
yes
Why may a control account carries both debit and credit balances?
A control account summarizes a set of subsidiary accounts. For example, Accounts receivable may have a control account, representing total Accounts receivable, and also may have a set of subsidiary accounts, representing the amount of Accounts receivable owed by each customer/debtor. The total of all subsidiary accounts must equal the balance of the control account. Control accounts will have debit or credit balances depending on the nature of those accounts. Control accounts for assets, such as Accounts receivable or Fixed assets, will have native debit balances. Control accounts for liabilities, such as Accounts payable, will have native credit balances.
What is the purpose of a credit limit?
A credit limit is applied to stop the user simply spending beyond their means. It also allows the lender to see how the customer operates their account. Credit limits usually start fairly low - but can be increased if the customer is using the account sensibly.
When you rendered services on account what accound do you debit?
If you render a service n account to a customer you debit Account Receivable and credit Service Revenue.
When a sale is made to a customer on credit it created an account receivable which is classified as?
Sundry Debtors
