"what accounts are affected and how when a payment on account is received from a customer
Accounts payable and Cash accounts
account payable
Accounts Receivable - Debit Service Revenue - Credit
no accounts, the only time an account would be affected is when you withdraw or deposit money into/from it, cash is nearly untraceable and does not affect your bank accounts
"what accounts are affected and how when a payment on account is received from a customer
Accounts payable and Cash accounts
account payable
Accounts Receivable - Debit Service Revenue - Credit
no accounts, the only time an account would be affected is when you withdraw or deposit money into/from it, cash is nearly untraceable and does not affect your bank accounts
1. Identify the accounts affected 2. Classify accounts affected. 3. Determine the amount of increase of decrease for each account affected. 4. Which account is debited? For what amount? 5. Which account is credited? For what amount? 6. What is the complete entry in the T account form?
When an invoice is paid, the accounts affected are typically the cash or bank account and the accounts receivable account. The cash or bank account increases to reflect the incoming payment, while the accounts receivable account decreases, indicating that the amount owed by the customer has been settled. This transaction helps maintain accurate financial records and ensures that the company's cash flow is properly tracked.
Asset account and liability account.
When purchasing a home with a home loan part of your mortgage payment will go to the equity account. The following would be used with an owner's equity account: paying property taxes and paying homeowners insurance.
No, and no.
It represents you paying all of your credits or loans... meaning, you used your cash to pay for your loans(accounts payable). And this will make cash a Credit and Accounts Payable Debit. Basically using cash to deduct your account payable.
1. Identify the accounts affected 2. Classify accounts affected. 3. Determine the amount of increase of decrease for each account affected. 4. Which account is debited? For what amount? 5. Which account is credited? For what amount? 6. What is the complete entry in the T account form?