Question

What does the account Accounts Receivable represent? What is the business transaction that increases this account?...

What does the account Accounts Receivable represent? What is the business transaction that increases this account? What is the business transaction that decreases this asset?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Account receivable means the balance due to a company for goods and services provided but amount is not paid by customers. It is shown under the head of current asset in the balance sheet.

Account receivable is created because sales made on credit. Thus, sales is transaction due to which account receivable increases.

Entry :

Account Receivable A/c   Dr.

To Sales A/c

It is decreased when payment is received from the customers.

Bank A/c     Dr

   To Account Receivable A/c

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
2. What does the account Property, Plant, and Equipment represent? What is the business transaction that...
2. What does the account Property, Plant, and Equipment represent? What is the business transaction that increases this account? What is (are) the business transaction(s) that decreases this asset?
A credit entry A. increases asset and expense accounts, or decreases liability, equity, and revenue accounts...
A credit entry A. increases asset and expense accounts, or decreases liability, equity, and revenue accounts B. Is recorded on the left side of a T-account C. Decreases asset and expense accounts, or increases liability, equity, and revenue account D. Decreases asset, expense and revenue accounts. E. Increases the withdrawals account
➢ What does the balance in the accumulated depreciation account represent? Does this balance represent cash...
➢ What does the balance in the accumulated depreciation account represent? Does this balance represent cash that can be used to replace the related plant asset when it is completely depreciated?
Date Accounts involved in transaction? Classification of the account? Increasing or Decreasing? Debit or Credit the...
Date Accounts involved in transaction? Classification of the account? Increasing or Decreasing? Debit or Credit the Account? Amount? July 2 Received $14,000 (cash) contribution from Brett Lawrence, owner, in exchange for capital. Tell me what happen to the business today in your own words? Example: The business got cash from the owner. Cash Asset Increasing Debit $          12,000 London, Capital Capital Increasing Credit $          12,000 July 4 Paid (cash) for utilities expense of $370. July 5 Purchased equipment on account,...
A business maintains a separate accounts receivable account for each customer in order to account for...
A business maintains a separate accounts receivable account for each customer in order to account for payments received from the customer and amounts still owed by the customer. true or false?
What would result in an increase in the Accounts Receivable days? a. Net income decreases. b....
What would result in an increase in the Accounts Receivable days? a. Net income decreases. b. Net Accounts Receivable increases. c. Number of days in the period decreases. d. Net sales increases.
Provide an original example of a transaction and then identify the type receivable—accounts receivable, a note...
Provide an original example of a transaction and then identify the type receivable—accounts receivable, a note receivable, or other receivables.
Saturn, Inc. paid $ 5,000 on accounts payable. How does this transaction affect the accounting equation...
Saturn, Inc. paid $ 5,000 on accounts payable. How does this transaction affect the accounting equation of​ Saturn? A. assets decrease by $5,000 and equity increases by $5,000 B. assets decrease by $5,000 and liabilities decrease by $5,000 C. assets increase by $5,000 and liabilities increases by $5,000 D. assets increase by $5,000 and equity decreases by $5,000
What does a debit balance in the cash short and over account represent? What does a...
What does a debit balance in the cash short and over account represent? What does a credit balance in this account represent?
Over the last 2 years, what percentage of Gross Accounts Receivable does the Allowance for Doubtful...
Over the last 2 years, what percentage of Gross Accounts Receivable does the Allowance for Doubtful Accounts represent for LEVI STRAUSS & CO. For the Fiscal Year Ended November 24, 2019?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT