the company is collecting accounts receivable amount equal to the increase in credit
Any sales on account (aka credit sales) will increase accounts receivable by the same amount. The journal entry for this would be: Account Receivable (debit) Sales (revenue) (credit)
Accounts-receivable@ Sales(sales being in your Results and accounts-receivable in your balance sheet)
There are two kinds of sales, one is cash sales and other once is credit sales. Whenever sales are made on credit it will create accounts receivable which will be shown in balance sheet as current asset. So it means that accounts receivables are created due to credit sales so it is already included in sales So; Total Sales = Cash Sales + Credit Sales (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.
[Debit] Sales returns [Credit] Accounts receivable
Any sales on account (aka credit sales) will increase accounts receivable by the same amount. The journal entry for this would be: Account Receivable (debit) Sales (revenue) (credit)
If sales is credit sales then it will create accounts receivable which means money is receivable from customers at future time.
Accounts-receivable@ Sales(sales being in your Results and accounts-receivable in your balance sheet)
Cash/Bank/Accounts Receivable [Debit] Sales[Credit]
Because accounts receivable is that amount which is receivable from customer due to sales of goods on credit.
There are two kinds of sales, one is cash sales and other once is credit sales. Whenever sales are made on credit it will create accounts receivable which will be shown in balance sheet as current asset. So it means that accounts receivables are created due to credit sales so it is already included in sales So; Total Sales = Cash Sales + Credit Sales (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.
[Debit] Sales returns [Credit] Accounts receivable
[Debit] accounts receivable [Credit] Sales revenue
Debit Accounts receivable / cash Credit Sales revenue
Goods sold to customers on credit give rise to accounts receivable.
Debit Accounts receivable / cash Credit Sales revenue