No, Accounts receivable are amounts due from customers for credit sales
cash on demand...
Non-standard Accounts Receivable payment terms may include excessively short payment periods, such as requiring payment within a few days (e.g., Net 5), which can strain cash flow for clients. Other examples are highly variable terms based on client creditworthiness or unique service agreements, which may include unusual discounts for early payment or penalties for late payment that deviate from common practices. Additionally, terms that require upfront payment or milestone payments for long-term contracts can also be considered non-standard.
Accounts receivable
When a check is received for the full payment of an accounts receivable (AR) account, the business records the payment by debiting cash and crediting accounts receivable. This action reduces the accounts receivable balance, reflecting that the customer has settled their debt. Additionally, it may involve updating financial records to ensure accurate reporting of cash flow and outstanding receivables. Proper documentation should be maintained for auditing and accounting purposes.
Dr Cash at Bank $5000Cr Accounts receivable - MK Kapital $5000(To record payment from debtor/accounts receivable - MK Kapital)
cash on demand...
Non-standard Accounts Receivable payment terms may include excessively short payment periods, such as requiring payment within a few days (e.g., Net 5), which can strain cash flow for clients. Other examples are highly variable terms based on client creditworthiness or unique service agreements, which may include unusual discounts for early payment or penalties for late payment that deviate from common practices. Additionally, terms that require upfront payment or milestone payments for long-term contracts can also be considered non-standard.
payment from customers
In business factoring refers to a transaction in which invoices or accounts receivable are sold for immediate payment generally to improve cash flow. Today the term "factoring" is used almost synonymously with invoice discounting, accounts receivable finance and all of their nuances.
Accounts receivable
When a check is received for the full payment of an accounts receivable (AR) account, the business records the payment by debiting cash and crediting accounts receivable. This action reduces the accounts receivable balance, reflecting that the customer has settled their debt. Additionally, it may involve updating financial records to ensure accurate reporting of cash flow and outstanding receivables. Proper documentation should be maintained for auditing and accounting purposes.
Dr Cash at Bank $5000Cr Accounts receivable - MK Kapital $5000(To record payment from debtor/accounts receivable - MK Kapital)
Correct Answer: not affect total assets.
Debit cash / bankCredit accounts receivable
Accounts receivable is an asset account and therefore debit in nature. If you were to credit it, you would reduce its balance. This would usually be done upon receipt of payment or when a receivable is written off.
debit cash / bankcredit accounts receivable
debit bankcredit accounts receivable