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An increase in Accounts Receivable (AR) entry occurs when a business records additional amounts owed to it by customers for goods or services provided on credit. This increase typically reflects higher sales or extended credit terms. It can impact cash flow, as it signifies that revenue has been recognized, but cash has not yet been collected. Monitoring AR increases is crucial for assessing a company's liquidity and credit management effectiveness.
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Would a credit entry made to the AR ledger make the balance increase or decrease?
A credit entry made to the Accounts Receivable (AR) ledger would decrease the balance. In accounting, credit entries reduce asset accounts like AR, indicating that money is being received or that a customer has settled their debt. Thus, the overall balance of accounts receivable will decrease with a credit entry.
Is AR a positive balance sheet entry that has a negative effect on Net Cash?
True
If the effect of the debit portion of an adjusting entry is to increase the balance of an asset account describe the effect of the credit portion of the entry?
increase the balance of the liability account :)
Which side of a receivables ledger control account is cash refund to customers?
If you are having to refund a customer money from an account receivable that means that 1. They overpaid on their account (or) 2. An entry error was made and they were over charged. For example 1. Say Customer X paid you $500 on their account but only owed you $50. The original entry is going to give their AR a (credit balance) of $450. Because AR is an account receivable it maintains a Debit balance. To correct this and your company plans on paying them cash back (issuing a check), you will Issue the check for $450 and credit your cash account and debit their AR account. This entry will not effect revenue as it was an over payment and not actually recorded as Income. If it's just an entry error, then simply correct it with an adjusting entry. Since the original entry is recorded as AR (debit) and Revenue (credit), reverse the entries for the adjustment amount noting why the adjusting entry was made. Since this was an entry error more than likely Income (revenue) was entered wrong as well.
An expiration of a major industry patent would A increase barriers to entry B decrease barriers to entry C leave barriers to entry unaffected D increase supplier power E decrease supplier power?
E. decrease supplier power
What is the adjusting entry to increase inventory?
To increase inventory, the adjusting entry typically involves debiting the Inventory account to reflect the increase in assets. Simultaneously, you would credit the appropriate account, such as Accounts Payable or Cash, depending on how the inventory was acquired. This entry ensures that the financial statements accurately represent the current level of inventory on hand.
What is the journal entry in the increase of authorized capital stock?
debit Unissued Common Stock credit Authorized Common Stock
Will an increase in common stock require a journal entry?
Yes, it requires a journal entry as follows:debit cash / bank / assetscredit share capital
Which reduces competition in an industry?
Patent laws, Freedom of entry for new firms, An increase in the number of producers , An increase in the number of buyers
What Entry will increases liability and revenue?
There is no way to increase Revenue and Liabilities in a single transaction. Another reason for this is the accounting equation.Assets = Liabilities + Owners EquityIn double entry accounting there must be a debit and a credit that equals. You want to "increase" liabilities and revenue with a single entry, this cannot be done because and increase in liabilities relies on a credit entry as does an increase in revenue.Assets maintain a Debit Balance, meaning they increase with a debit.Liabilities maintain a Credit Balance, meaning the increase with a credit.Owners Equity maintains a Credit Balance, increasing with credit.Revenue is an OWNERS EQUITY ACCOUNT and therefore increases with a credit.Say you desired to increase Liabilities $500 and Revenue $500 in a single entry, you couldn't because you'd need to "credit" liabilities $500 and "credit" revenue $500, but you MUST have a "debit" that equals the same amount of credits.
How do you record journal entry to increase notes payable?
debit cashcredit notes payable
What is the journal entry to increase pension expense?
Debit pension expenseCredit cash / bank
