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Q: You invested money in the first IRA accounts that allowed an individual to put up tp 2000 per year tax free in the IRA you are now 64 years old If you withdraw the funds will you have to pay any tax?
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Continue Learning about Accounting

What is Accounts Receivable Management?

Accounts receivable management is a process of granting credit to customers as well as then receiving money at maturity time. Accounts receivable management includes activities like: 1 - Credit limit 2 - Credit time 3 - Discount allowed etc.


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Discounts are allowed in the trading and loss accounts, because the products are not in brand new condition. This allows an amount of money to be taken off so that the item is discounted.


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Accounts Receivable and Notes Receivable are very important to a company. These two accounts will show money that is owed to a company and they increase said company's assets. Investments shows money that a company may have received in order to operate a business and usually how much money the company will owe when having to repay this investment. (investors usually expect dividends or royalties on money that they invest). These accounts keep track of all that. With out these accounts a company can not keep accurate accounting records. If someone owes a company money, this needs to be on the books (in either accounts receivable or notes receivable, depending on the length of time the person is allowed to pay the balance.)


When is discount allowed to debtors?

Discount allowed for the early settlement of accounts - This discount is allowed to your debtors or customers at the time of the settlement of their account. You may agree with your customers to allow a certain percentage of discount allowed e.g. 2½ % if they settle the full amount on an invoice within 30 days). This discount is recorded when a debtor or customer settles the full invoice within the specified time. This discount needs to be entered as an expense in a Discount Allowed account and will reduce the net profit and will have no effect on the gross profit.This is murali +9199591-22272

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