0
To reduce your AR account balance What is the offsetting account?
Wiki User
∙ 14y ago
$.ooooooooooooooooooooooooo2
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
What is a AR considered on a trial balance sheet?
An AR on a Trial Balance sheet is considered as Accounts receivable.
What ar the benefits of using Abbey Online Banking?
There are many benefits to using Abbey Online Banking. For example, there are no ATM fees, and you can earn interest from your checking account. If you're looking to save there is no minimum account balance for savings accounts.
Why is it important to maintain individual account receivable balances?
Individual account receivable balances show each person (or company's) balance owed to the company. You must keep all individual account receivable balances accurate in order to know who owes what to you. For example you general AR balance shows you are owed $5,000, this doesn't show you "who" owes you that amount or how much each person owes. Say John Doe owes you $1500 and Suzie Q owes you $2,000 that accounts for $3,500 of the AR you are owed, but doesn't account for the remaining balance of $1500. Without proper individual AR accounts you wouldn't have a record of who owes what and could either end up trying to over charge someone or losing money if you don't know how owes you so that you can invoice them for the correct amount.
What is the formula for calculating net account receivable?
Net Accounts Receivable is found by subtracting the "noncollectable" amount in AR from the balance. Also referred to sometimes as ADA (allowance for doubtful accounts).
Which side of a receivables ledger control account is cash refund to customers?
If you are having to refund a customer money from an account receivable that means that 1. They overpaid on their account (or) 2. An entry error was made and they were over charged. For example 1. Say Customer X paid you $500 on their account but only owed you $50. The original entry is going to give their AR a (credit balance) of $450. Because AR is an account receivable it maintains a Debit balance. To correct this and your company plans on paying them cash back (issuing a check), you will Issue the check for $450 and credit your cash account and debit their AR account. This entry will not effect revenue as it was an over payment and not actually recorded as Income. If it's just an entry error, then simply correct it with an adjusting entry. Since the original entry is recorded as AR (debit) and Revenue (credit), reverse the entries for the adjustment amount noting why the adjusting entry was made. Since this was an entry error more than likely Income (revenue) was entered wrong as well.
On the trial balance sheet AR is what?
AR related to accounts receivable in trial balance sheet of business.
What is a AR considered on a trial balance sheet?
An AR on a Trial Balance sheet is considered as Accounts receivable.
On the Trial Balance Sheet AR is?
in a trial balance sheet are is a debit credit or liabiltiy
What ar the benefits of using Abbey Online Banking?
There are many benefits to using Abbey Online Banking. For example, there are no ATM fees, and you can earn interest from your checking account. If you're looking to save there is no minimum account balance for savings accounts.
What is the formula for calculating net account receivable?
Net Accounts Receivable is found by subtracting the "noncollectable" amount in AR from the balance. Also referred to sometimes as ADA (allowance for doubtful accounts).
Why is it important to maintain individual account receivable balances?
Individual account receivable balances show each person (or company's) balance owed to the company. You must keep all individual account receivable balances accurate in order to know who owes what to you. For example you general AR balance shows you are owed $5,000, this doesn't show you "who" owes you that amount or how much each person owes. Say John Doe owes you $1500 and Suzie Q owes you $2,000 that accounts for $3,500 of the AR you are owed, but doesn't account for the remaining balance of $1500. Without proper individual AR accounts you wouldn't have a record of who owes what and could either end up trying to over charge someone or losing money if you don't know how owes you so that you can invoice them for the correct amount.
How much time to pass for an AR account to be delinquent?
The amount of time required to pass for an AR account to be considered delinquent is 30 days.
How much time need to pass for an AR account to be delinquent?
The amount of time required to pass for an AR account to be considered delinquent is 30 days.
What elements ar combined in the lunge?
Cardio, balance, and strength
What is Account receivables on a balance sheet?
In short, correct it. How did you get a credit balance in A/R? If customers overpaid their bills, you should set up a liability account called Refunds Due and move the balance there. If the payments are deposits on future orders, you should have a Customer Deposits liability account. If they are payments in advance, you need an Unearned Income account. Perhaps you have un-recorded sales. It depends on the nature of the paymants posted to Accounts Receivable when there was no receivable in the first place. I have to say that I don't entirely agree with this answer. I do agree that the first step is to find out exactly WHY you have a credit balance in your Account Receivable. Once this is established, how to correct it, or even temporarily leave it, depends on the reason it's there. First let's say John Q Public is your customer and he owed you $500, however he accidentally pays you twice and you record the transaction, giving this AR a credit balance of $500. Your best option is to issue a refund for the amount, however, there is no sense in creating an obsolete or useless account such as "refunds due". Instead issue a refund in the amount of $500 debiting the Account Receivable - John Q Public for $500 and crediting Cash. If, as stated in the first answer, it's payment on a future order, as he called it, deposits, it would still be listed as "unearned income or revenue" For example, John Q Public wants to pay for $500 in watches, however the watches will be shipped 30 days later. You will Debit your Cash and Credit your Unearned Revenue (Income) not some obsolete account called Customer Deposits. Once the order ships, you will then Debit the unearned revenue bringing the balance down to zero while crediting Revenue. Now lets go back to the accidental overpayment. Say John Q Public did overpay his bill and your company wants to give him credit for the overpaid balance, leaving the credit balance in Accounts Receivable is perfectly acceptable. Since each AR will be unique to the customer, then there is no reason to move the credit balance to any other account. In your General Ledger each AR will be represented by the name of the customer, for example two customers with AR accounts won't be grouped into one account, they will be separated, for example AR - Customer A and AR- Customer B Let's say Customer A has a credit balance in his AR account of $500 and he then places a credit order of $1500, when it is recorded, it will show that he had a credit balance and therefore now only owes $1,000. Moving the balance from account to account is pointless and time consuming. I have to note that "unrecorded sales" would not effect your Account Receivable. Out of all of this, first things first, check all Credit Sales Receipts pertaining to said customer to make sure all entries we recorded accurately, perhaps it was a transposition of numbers, for example John Q Public paid $580 dollars for his AR and it was transposed and recorded as $850, if this is the case, simply correct the numbers with a note as to why the entry has been altered.
Which side of a receivables ledger control account is cash refund to customers?
If you are having to refund a customer money from an account receivable that means that 1. They overpaid on their account (or) 2. An entry error was made and they were over charged. For example 1. Say Customer X paid you $500 on their account but only owed you $50. The original entry is going to give their AR a (credit balance) of $450. Because AR is an account receivable it maintains a Debit balance. To correct this and your company plans on paying them cash back (issuing a check), you will Issue the check for $450 and credit your cash account and debit their AR account. This entry will not effect revenue as it was an over payment and not actually recorded as Income. If it's just an entry error, then simply correct it with an adjusting entry. Since the original entry is recorded as AR (debit) and Revenue (credit), reverse the entries for the adjustment amount noting why the adjusting entry was made. Since this was an entry error more than likely Income (revenue) was entered wrong as well.
How much time needed to pass for an AR account to be considered delinquent?
The amount of time required to pass for an AR account to be considered delinquent is 30 days.
