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A collection for an account receivable will affect two accounts. Cash and the Account Receivable that it is related to.
For example, a customer has purchased a computer on account for $1500 and they pay you $500 towards the balance, the two accounts will be
Cash (db) $500
Account Rec-*customer name - (cr) $500
Not only did you receive cash, which increases your cash (debit) but the customer paid toward his account and it reduces the amount he owes (credit).
What else can I help you with?
What is the journal entry for collected on account 1200?
Debit cash / bank 1200Credit accounts receivable 1200If it is a collection from customer's account, thenDEBIT: Cash 1200CREDIT: Accounts Receivable 1200Collection from customer's account
Is sales the driving force for accounts receivable?
yes the sales will drive the main steam in the account receivable because when the sales happen the account receivable collection attampt will start
Does collection on account receivable increase both cash and accounts recievable?
NO
What is the nature of account receivable?
Account receivable is an asset
Collection of a 600 accounts receivable?
If you're speaking $600 money received for an account receivable, the entry is Debit to Cash for $600 Credit to the appropriate AR for $600
What is the journal entry for collected on account 1200?
Debit cash / bank 1200Credit accounts receivable 1200If it is a collection from customer's account, thenDEBIT: Cash 1200CREDIT: Accounts Receivable 1200Collection from customer's account
Is sales the driving force for accounts receivable?
yes the sales will drive the main steam in the account receivable because when the sales happen the account receivable collection attampt will start
Does collection on account receivable increase both cash and accounts recievable?
NO
If any time passes between the time of sale and the collection of payment?
An account receivable is always created
If any time passes between the time of sale and the collection of payment...?
An account receivable is always created
What is the nature of account receivable?
Account receivable is an asset
Collection of a 600 accounts receivable?
If you're speaking $600 money received for an account receivable, the entry is Debit to Cash for $600 Credit to the appropriate AR for $600
What are average accounts receivable?
what is average account receivable
Is bills receivable real account?
Bills receivable is a real account. When acceptance is received, Bills receivable account is debited (debit what comes in). When the bill is discounted or returned to acceptor at the time of maturity, Bills receivable account is credited (credit what goes out).
How does account receivable affect net income?
Account receivable is a balance sheet item shown under current assets on the asset side, having a debit balance. It doesn't have anything to do with net income as accounts receivable is never shown in the trading profit and loss account. Only credit sales relating to such receivables during the current year forms part of the credit side of profit and loss and nit the account receivable itself.
Question about accounts receivable and inventory?
account receivable and inventory
What is account receivable based on?
Account Receivable financing is base on PDCs, sales invoice, delivery receipts.
