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I'm not exactly sure of the question, but I'm going to assume you mean what is the difference in the balances of sales and account receivable.
First lets look at sales, sales (aka revenue) is what a company makes from providing a good or service. Say you sale $1,000 in watches and the buyer wants to put $500 of that on account (credit) for you that is an account receivable. The difference ($500) is recorded as "cash".
If however your question is referring to the accounts themselves, there is no "term" to refer to the difference as the accounts are entirely different themselves and on opposite ends of the accounting equation. Sales (aka revenue) is an Equity account and maintains a credit balance, while accounts receivable is an asset account and maintains a debit balance.
Basic transactions for sales and accounts receivable are: You sold $1,000 in watches, the buy pays $500 in cash and places the remaining $500 on credit the journal entry for this transaction is as follows:
Cash (debit) $500
Account Receivable (debit) $500
Sales (credit) $1,000
What else can I help you with?
What is the journal entry for credit sales?
Accounts-receivable@ Sales(sales being in your Results and accounts-receivable in your balance sheet)
What is the difference for account receivable and accounts payable?
When company make sales in credit it creates the accounts receivable while when company purchases on credit it creates the accounts payable so accounts receivable is current asset while accounts payable is current liability.
A firm has a days sales outstanding of 40 days and its annual sales are 7300000 what is the accounts receivable balance?
For calculating accounts receivable balance we need accounts receivable turnover rate So Accounts receivable turnover rate = number of days in year/annual sales outstanding accounts receivable turnover rate = 360/40 = 9 Accounts receivable balance = 7300000/9 Accounts receivable balance = 811111
How do you calculate accounts receivable turnover rate?
Net Sales / Average Accounts Receivable = Account Receivable Turnover
How is accounts receivable effected by credit sales?
Any sales on account (aka credit sales) will increase accounts receivable by the same amount. The journal entry for this would be: Account Receivable (debit) Sales (revenue) (credit)
What is the journal entry for credit sales?
Accounts-receivable@ Sales(sales being in your Results and accounts-receivable in your balance sheet)
How calculate accounts receivable turnover ratio?
the formula of calculating account receivable turnover = Net Sales/ average gross receivable
If you have a sale what does it do to the accounts receivable?
If sales is credit sales then it will create accounts receivable which means money is receivable from customers at future time.
What is the difference for account receivable and accounts payable?
When company make sales in credit it creates the accounts receivable while when company purchases on credit it creates the accounts payable so accounts receivable is current asset while accounts payable is current liability.
A firm has a days sales outstanding of 40 days and its annual sales are 7300000 what is the accounts receivable balance?
For calculating accounts receivable balance we need accounts receivable turnover rate So Accounts receivable turnover rate = number of days in year/annual sales outstanding accounts receivable turnover rate = 360/40 = 9 Accounts receivable balance = 7300000/9 Accounts receivable balance = 811111
How do you calculate accounts receivable turnover rate?
Net Sales / Average Accounts Receivable = Account Receivable Turnover
Why is accounts receivable an assit?
Because accounts receivable is that amount which is receivable from customer due to sales of goods on credit.
How is accounts receivable effected by credit sales?
Any sales on account (aka credit sales) will increase accounts receivable by the same amount. The journal entry for this would be: Account Receivable (debit) Sales (revenue) (credit)
Are credit sales recorded by accounts receivable?
Yes, credit sales are recorded by accounts receivable. When a business makes a sale on credit, it increases its accounts receivable balance, reflecting the amount owed by customers. This entry is typically recorded as a debit to accounts receivable and a credit to sales revenue in the accounting system. Thus, accounts receivable serves as a record of outstanding credit sales that the business expects to collect in the future.
What is the double entry for sale?
Cash/Bank/Accounts Receivable [Debit] Sales[Credit]
Is accounts receivable included in sales?
There are two kinds of sales, one is cash sales and other once is credit sales. Whenever sales are made on credit it will create accounts receivable which will be shown in balance sheet as current asset. So it means that accounts receivables are created due to credit sales so it is already included in sales So; Total Sales = Cash Sales + Credit Sales (Accounts Receivable)
Journal entry of sales to accounts receivable with sales tax?
debit accounts receivabledebit sales taxcredit sales revenue
