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debit cash bankcredit accounts receivable
can't happen man. When u sell on credit accounts receivable have to go up because you are getting paid in the future.
This is pretty simple to answer as it doesn't need a lot of explanation or examples. An increase in accounts receivable would decrease a company's cash flow (incoming cash would be effected.) Accounts receivable are accounts of persons or other company's that owe you (or your company) money but has not yet been paid. Since this shows money owed to you by another there is no "cash" changing hands and that of course effects you (or your company's) cash flow.
A 'bad debt'
bad debt
Paid accounts receivable appears on a balance sheet, to the extent that the amounts paid are deducted from the accounts receivables balance and added to the bank account. Therefore, the effect on the balance sheet would be as follows: decrease in asset- accounts receivables increase in asset- Cash
debit cash / bankcredit accounts receivable
debit cash bankcredit accounts receivable
Accounts receivable is money that was owed to you being paid/
You could sell merchandise and make a profit. If the customer has not paid you yet, you have not increased cash. You have increased accounts receivable.
can't happen man. When u sell on credit accounts receivable have to go up because you are getting paid in the future.
This is pretty simple to answer as it doesn't need a lot of explanation or examples. An increase in accounts receivable would decrease a company's cash flow (incoming cash would be effected.) Accounts receivable are accounts of persons or other company's that owe you (or your company) money but has not yet been paid. Since this shows money owed to you by another there is no "cash" changing hands and that of course effects you (or your company's) cash flow.
Cash basis accounting is a method under which cash is immediately paid or received as transection occured and no future payment or receit is recorded that's why there is no use of payable or receivable accounts exists in this accounting method.
The answer is in your question actually. If you received cash on account the asset of CASH will increase, while the asset of Account Receivable will decrease.Since you received cash it is assumed that they paid you cash on a balance that they owed you, so the journal entry would be a debit to cash (increase) and a credit to accounts receivable (decrease)
Accounts Receivable are invoices for work completed and billed out that have not been paid by your customer.
A 'bad debt'
accounts receivable