Accounts receivable
Received cash from a customer as payment on account
Make sure that the customer account is credited and that cash is debited.
"what accounts are affected and how when a payment on account is received from a customer
Because money is being received from customer we are not owing.
By definition, a letter of remittance is "a document sent by a customer, which is often a financial institution or other type of firm, to a creditor or supplier along with a payment to briefly explain what the payment is for so that the customer's account will be credited properly." These letters are usually used when the customer does not have an established account with the other entity.
Received cash from a customer as payment on account
Make sure that the customer account is credited and that cash is debited.
"what accounts are affected and how when a payment on account is received from a customer
Principal and Agent.
Because money is being received from customer we are not owing.
If you are the seller and recieve an advance payment from a customer, it means you are owing the customer and as much a creditor. Your cash is debited and the customer ( Customer's deposit account) credited;
By definition, a letter of remittance is "a document sent by a customer, which is often a financial institution or other type of firm, to a creditor or supplier along with a payment to briefly explain what the payment is for so that the customer's account will be credited properly." These letters are usually used when the customer does not have an established account with the other entity.
A payment on account by a customer happens when a customer pays a bill. For example, if a person had an account at a furniture store, each month, he or she would make a payment on their account to pay down their balance.
A payment on account by a customer happens when a customer pays a bill. For example, if a person had an account at a furniture store, each month, he or she would make a payment on their account to pay down their balance.
debit to cash and credit to accounts receivable
debit to cash and credit to accounts receivable
true