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Would the collection of a 900 account after the 2 percent discount period will result in a debit to accounts receivable for 900?
Yes, yet no. Yes in the fact that the full $900 would be recorded into the AR. However, since AR accounts are "assets" and maintain a debit balance, then a credit for the $900 will apply, not a debit.
The fact that the company is paying their account "after" the discount period means that they are not taking advantage of the discount and are paying the net amount, all $900, the company will record the receipt of the full $900 as a normal transaction.
What else can I help you with?
What is the journal entry for collected on account 1200?
Debit cash / bank 1200Credit accounts receivable 1200If it is a collection from customer's account, thenDEBIT: Cash 1200CREDIT: Accounts Receivable 1200Collection from customer's account
Does collection on account receivable increase both cash and accounts recievable?
NO
Is sales the driving force for accounts receivable?
yes the sales will drive the main steam in the account receivable because when the sales happen the account receivable collection attampt will start
What is the Journal entry for discount allowed?
The journal entry for discount allowed typically involves debiting the Discount Allowed account and crediting the Accounts Receivable or Sales account. For example, if a business allows a $100 discount on a sale, the entry would be: Debit: Discount Allowed $100 Credit: Accounts Receivable or Sales $100 This reflects the reduction in revenue due to the discount offered to the customer.
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 is the journal entry for collected on account 1200?
Debit cash / bank 1200Credit accounts receivable 1200If it is a collection from customer's account, thenDEBIT: Cash 1200CREDIT: Accounts Receivable 1200Collection from customer's account
Does collection on account receivable increase both cash and accounts recievable?
NO
Is sales the driving force for accounts receivable?
yes the sales will drive the main steam in the account receivable because when the sales happen the account receivable collection attampt will start
What is the Journal entry for discount allowed?
The journal entry for discount allowed typically involves debiting the Discount Allowed account and crediting the Accounts Receivable or Sales account. For example, if a business allows a $100 discount on a sale, the entry would be: Debit: Discount Allowed $100 Credit: Accounts Receivable or Sales $100 This reflects the reduction in revenue due to the discount offered to the customer.
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
A collection of account receivable will affect what account?
A collection for an account receivable will affect two accounts. Cash and the Account Receivable that it is related to.For example, a customer has purchased a computer on account for $1500 and they pay you $500 towards the balance, the two accounts will beCash (db) $500Account Rec-*customer name - (cr) $500Not only did you receive cash, which increases your cash (debit) but the customer paid toward his account and it reduces the amount he owes (credit).
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
Collection of a 600 accounts receivable?
If you're speaking $600 money received for an account receivable, the entry is Debit to Cash for $600 Credit to the appropriate AR for $600
How would you describe the entries to record the disposition of accounts receivables?
The entries to record the disposition of accounts receivable typically involve debiting the cash or another asset account and crediting accounts receivable to reflect the collection of the amount owed. If an account is deemed uncollectible, the company would debit a bad debt expense account and credit accounts receivable to recognize the loss. Additionally, if accounts are sold to a third party, the entry would involve debiting cash or a receivable from the sale and crediting accounts receivable. These entries ensure that the financial statements accurately reflect the company's assets and any potential losses.
How calculate accounts receivable turnover ratio?
the formula of calculating account receivable turnover = Net Sales/ average gross receivable
