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What happens when a company pays an amount it owes a creditor in the account ledger?
When a company pays an amount it owes to a creditor, it reduces its liabilities on the balance sheet by the payment amount, reflecting a decrease in Accounts Payable. Simultaneously, the company's cash or bank account is decreased by the same amount, indicating a cash outflow. This transaction updates the account ledger to maintain accurate financial records, ensuring that both the asset and liability sides of the balance sheet remain balanced.
What else can I help you with?
Can a credit card company charge off an account when they are receiving monthly payments?
Yes, if the monthly payment is not the minimum amount agreed upon, a breach of contract has occurred on the part of the account holder and the creditor may take whatever action they decide is warranted.
In Georgia can a judgment creditor take money from your bank account?
Yes. A bank account can be levied by the judgment creditor even if the account is jointly held. If the account is joint and only one of the account holder's is the named judgment debtor, the non debtor account holder must submit proof to the court as to the amount of funds belonging to them in order to protect those funds from being seized. When it concerns such joint account the court will generally freeze the account and allow the non debtor a specified amount of time to claim his or her exempt funds that are in the account.
What is an account receivable?
account receivables reflects those amount which the company has sold and payment for that sold items has not yet recieved so that amount will be booked as account recievables
What happens if a creditor turns your account over to collections but fails to send monthly statements as to how much is still owed?
Most companies won't have your account in a collection agency company unless you have missed several payments. Obviously you have so now the company has the drift that it's a waste of a stamp on your bill to inform you of what you owe. You know what you owe and on the back of each bill you can figure out what your interest will be on that outstanding debt. Nice try! At any given time you can talk to someone at that company and try to come to some amicable agreement. They just want their money. You should want to try and pay off your debts even if it's a small amount at a time, but on a steady basis or you will lose your credit rating and that can be very messy down the line. Marcy Once an account has been delinquent for 180 days it is considered "charged off" and the creditor will no longer submit statements to the account holder. This does not in any way indicate that the debt is not valid and collectible.
What happens if If an amount is recorded on the side of a T account opposite the normal balance side?
decreased
Can a credit card company empty your bank account if you don't pay?
If you allow a creditor to deduct a payment of X amount of dollars, the creditor will most likely deduct that amount. If an account is 'past due' and a debtor gives a creditor a number to do a check by phone, the creditor can withdraw the amount of money owed which can cause the debtor to become overdrawn. You may be able to make a case, stating that you did not authorize that amount but while fighting this your account can still remain overdrawn. So if you have a past due account, make the payment by money order or cashiers check just to avoid this occurence from taking place.
When a supplier makes a downward adjustment in the amount owed by a creditor the creditor will?
increase the amount of the account payable to the supplier, and decrease an asset such as inventory.
Can a creditor open a new account for the difference of the original loan verses the agreed amount owed through a bankruptcy?
I should think they can change account numbers, even sell it to nother company that identifies it differently in any way, as long as the terms/amount aren't changed.
What happens if a judgment creditor places a levy on a bank account and the account balance is less than the judgment amount?
You get fined a fee by the bank, your account is frozen, and they will probably come after your paycheck through garnishment (even if the levy is removed) Levy is a step, garnishment follows.
What happens to the interest rate on your credit card if you've filed for Chapter 7 Bankruptcy?
If the credit card was included in the Chapter 7, nothing happens. The account will be closed by the creditor and the amount owed including any accrued interest is wiped out.
Can a credit card company charge off an account when they are receiving monthly payments?
Yes, if the monthly payment is not the minimum amount agreed upon, a breach of contract has occurred on the part of the account holder and the creditor may take whatever action they decide is warranted.
Can a creditor garnishee wages if you are on public assistance?
No.All SS benefits and public assistance benefits are exempt from creditor action. If the benefits are commingled in a bank account with non exempt funds, it is possible for a judgment creditor to request the court freeze the account until the amount of exempt funds is proved.
Can a creditor freeze va disability account?
No. Disability benefits are exempt from judgment creditor action. However, if the benefits are commingled with monies that are not exempted an bank account can be frozen by court order until it is determined the amount of funds that are exempted from seizure.
What is lien mark in banking industry?
Lein mark is a kind of security, to the creditor from debitor. It insure financial security to creditor from debitor. In simple term, if you have issued lein mark to your bank account for some money, your bank is going to freeze that amount. Under any case, that much amount will not be debited from your account.
A written order to the to pay a specific amount of money to a person or company out of an account?
A written order to pay a specific amount of money to a person or company out of an account is called a voucher.
In Georgia can a judgment creditor take money from your bank account?
Yes. A bank account can be levied by the judgment creditor even if the account is jointly held. If the account is joint and only one of the account holder's is the named judgment debtor, the non debtor account holder must submit proof to the court as to the amount of funds belonging to them in order to protect those funds from being seized. When it concerns such joint account the court will generally freeze the account and allow the non debtor a specified amount of time to claim his or her exempt funds that are in the account.
Does a creditor have to have a court order for garnish a bank account?
Yes. A creditor can not just simply walk into a bank and demand your money. Only a court can have a creditor take money from your bank account. Actually, the court would probably order the bank to pay a certain amount to the creditor from your account rather than give the creditor the right to take money out of your account. A supreme court decision stopped that racket in Arizona.
