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.
Received cash from a customer as payment on account
"what accounts are affected and how when a payment on account is received from a customer
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Accounts receivable
When a customer pays their account, the account receivable department needs to put the amount of the payment into the computer. A receipt should also be sent to the customer.
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.
Received cash from a customer as payment on account
"what accounts are affected and how when a payment on account is received from a customer
true
Accounts receivable
When a customer pays their account, the account receivable department needs to put the amount of the payment into the computer. A receipt should also be sent to the customer.
Because money is being received from customer we are not owing.
It means to make a partial of full payment without specifying an specific reason or invoice for the payment.
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.
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;
Make sure that the customer account is credited and that cash is debited.
debit to cash and credit to accounts receivable