Yes it is a real account. Accounts receivable is considered an asset and asset accounts are real or permanent accounts.
what is average account receivable
Net Sales / Average Accounts Receivable = Account Receivable Turnover
account receivable and inventory
Any account on the balance sheet is a permanent account - 'Cash', 'Accounts Receivable', 'Accounts Payable'. Income and expense accounts are temporary accounts because they are closed at the end of an accounting period. Examples are: 'Service Revenue', 'Office Expense', and, my personal favourite, 'Meetings and Entertainment Expense'.
account receivable is the money that owed the business
what is average account receivable
Net Sales / Average Accounts Receivable = Account Receivable Turnover
account receivable and inventory
Any account on the balance sheet is a permanent account - 'Cash', 'Accounts Receivable', 'Accounts Payable'. Income and expense accounts are temporary accounts because they are closed at the end of an accounting period. Examples are: 'Service Revenue', 'Office Expense', and, my personal favourite, 'Meetings and Entertainment Expense'.
account receivable is the money that owed the business
the formula of calculating account receivable turnover = Net Sales/ average gross receivable
Accounts Receivable is an asset since it is a resource controlled by the entity as a result of past transaction with the future economic benefit to flow to the entity.Sale of goods and services is a revenue and not accounts receivable.
Debit cash / bank 1200Credit accounts receivable 1200If it is a collection from customer's account, thenDEBIT: Cash 1200CREDIT: Accounts Receivable 1200Collection from customer's account
scope and limitation of accounts receivable
accounts payable
form_title=Account Receivable Management form_header=Get help managing your accounts receivable. Have you used an account receivable management program before? = () Yes () No () Not Sure Do you have any debts you need to collect on?= () Yes () No () Not Sure Do you have any oustanding accounts?= () Yes () No () Not Sure
Accounts receivable in an asset account and normally maintains a debit balance. So the answer is Yes.