acounts rec goes down because you get what you have ben expecting.
Yes, when you receive cash for services rendered, you debit cash to increase your cash balance and credit accounts receivable to decrease the amount owed by the customer. This transaction reflects the collection of payment that was previously recorded as an accounts receivable. It effectively updates your financial records to show that the cash has been received and the receivable has been settled.
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
No, Accounts receivable are amounts due from customers for credit sales
Dr Cash at Bank $5000Cr Accounts receivable - MK Kapital $5000(To record payment from debtor/accounts receivable - MK Kapital)
NO
Yes, when you receive cash for services rendered, you debit cash to increase your cash balance and credit accounts receivable to decrease the amount owed by the customer. This transaction reflects the collection of payment that was previously recorded as an accounts receivable. It effectively updates your financial records to show that the cash has been received and the receivable has been settled.
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
No, Accounts receivable are amounts due from customers for credit sales
Dr Cash at Bank $5000Cr Accounts receivable - MK Kapital $5000(To record payment from debtor/accounts receivable - MK Kapital)
Debit cash / bankCredit accounts receivable
NO
debit cash / bankcredit accounts receivable
debit to cash and credit to accounts receivable
debit to cash and credit to accounts receivable
Increase in accounts receivable causes the reduction in cash because if sales are made on cash then there is no increase in accounts receivable and company receives cash which causes the increase in cash while accounts receivable not.
When a payment is received from a customer the adjusting entry is really simple. Cash has to be adjusted for the amount received since the company is actually receiving cash. Accounts recievable will also be adjusted to show payment was received. For example if the payment was in the amount of $500, you would want to Debit Cash and Credit Accounts Receivable, both for that amount of $500.
To treat commission receivable due, first record it as an asset on the balance sheet under accounts receivable. When the commission is earned, recognize revenue in the income statement. Once payment is received, update your cash account by increasing it and decreasing the accounts receivable. Ensure to monitor for any overdue amounts and assess the need for an allowance for doubtful accounts if collection is uncertain.