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When a check is received for the full payment of an Accounts Receivable account which of the following steps do you need to take?
A check in most accounting is considered the same as cash and therefore it is treated the same.
A debit to the cash account will be made to note payment of the account and a credit to the appropriate account payable account to bring the AP down to a zero balance.
The check will then be deposited with the normal bank transactions and recorded as such in the bank statements for the company.
What else can I help you with?
What account is credited when a payment is received from a customer?
Accounts receivable
What is the purpose and scope of accounts receivable?
Account recievable is a account that records the amount should be received . Accounts receivable are the short-term financial assets of a wholesaler or retailer that arise from sales on credit
Is accounts receivable a permanent account?
Yes it is a real account. Accounts receivable is considered an asset and asset accounts are real or permanent accounts.
What are average accounts receivable?
what is average account receivable
How do you calculate accounts receivable turnover rate?
Net Sales / Average Accounts Receivable = Account Receivable Turnover
What account is credited when a payment is received from a customer?
Accounts receivable
What is the purpose and scope of accounts receivable?
Account recievable is a account that records the amount should be received . Accounts receivable are the short-term financial assets of a wholesaler or retailer that arise from sales on credit
Is accounts receivable a permanent account?
Yes it is a real account. Accounts receivable is considered an asset and asset accounts are real or permanent accounts.
What are average accounts receivable?
what is average account receivable
How do you calculate accounts receivable turnover rate?
Net Sales / Average Accounts Receivable = Account Receivable Turnover
Question about accounts receivable and inventory?
account receivable and inventory
When a note is received from a customer on an account it is recorded by debiting account receviable and crediting notes receivable?
When a note is received from a customer, it signifies a formal agreement for payment, typically with interest. The accounting entry involves debiting Accounts Receivable to decrease it, as the amount owed by the customer is now represented by the note. Simultaneously, Notes Receivable is credited to recognize the new asset created by the received note. This reflects the transfer from a more general account (Accounts Receivable) to a more specific one (Notes Receivable).
Identify other account in a transacton when accounts receivable is dereased?
The other account is usually cash. Transactions are exchanges of things of value. Accounts Receivable is a asset - something of value owned by an entity. If Accounts Receivable is decreased, that means that the entity received something of value (or other asset - usually cash) in exchange.
How calculate accounts receivable turnover ratio?
the formula of calculating account receivable turnover = Net Sales/ average gross receivable
Definition of accounts receivable?
account receivable is the money that owed the business
Is an account receivable a revenue?
Accounts Receivable is an asset since it is a resource controlled by the entity as a result of past transaction with the future economic benefit to flow to the entity.Sale of goods and services is a revenue and not accounts receivable.
How is a cash payment received from a customer for a product purchased on account recorded?
debit to cash and credit to accounts receivable
