It is basically deducting the allowance for doubtful accounts from the total accounts receivable.
the schedule of accounts receivable shows
the schedule of accounts receivable shows
For calculating accounts receivable balance we need accounts receivable turnover rate So Accounts receivable turnover rate = number of days in year/annual sales outstanding accounts receivable turnover rate = 360/40 = 9 Accounts receivable balance = 7300000/9 Accounts receivable balance = 811111
Net Sales / Average Accounts Receivable = Account Receivable Turnover
A Credit entry reduces Accounts Receivable
the schedule of accounts receivable shows
the schedule of accounts receivable shows
the formula of calculating account receivable turnover = Net Sales/ average gross receivable
For calculating accounts receivable balance we need accounts receivable turnover rate So Accounts receivable turnover rate = number of days in year/annual sales outstanding accounts receivable turnover rate = 360/40 = 9 Accounts receivable balance = 7300000/9 Accounts receivable balance = 811111
Net Sales / Average Accounts Receivable = Account Receivable Turnover
Because accounts receivable is that amount which is receivable from customer due to sales of goods on credit.
Accounts receivable is money that was owed to you being paid/
A Credit entry reduces Accounts Receivable
should accounts revceivable (net) bedeleted out Not sure what the first answer is saying, but net accounts receivable is total accounts receivable less allowance for doubtful accounts (accounts you think are not going to pay you)
Accounts receivable is decreased with credit balance or by receiving the cash from customers.
If sales is credit sales then it will create accounts receivable which means money is receivable from customers at future time.
Accounts receivable is that amount which is receivable from debtors at future date that's why it is current asset of business.