0
What is the difference between a Debit and a Credit as it relates to Accounts Receivable?
Wiki User
∙ 14y ago
Accounts Receivable is an account that holds what a person or company owes your business. For example you sold a computer to a customer on credit, this credit is listed in an Accounts Receivable and is an asset.
Asset accounts maintain a Debit Balance, meaning that a debit to the account will increase the account (in other words increase the amount the customer owes the company).
A credit to the account will decrease the balance of that account (in other words, it records payment or credit to that customers account and decreases the amount the customer owes the company).
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
What companies use accounts receivable system?
Accounts receivables relates to credit customers. Sales on credit will go through receivables as well as any credit notes and payments for those sales. How_do_you_use_account_payble_and_receivableThese are basic accounts. Accounts Payable is used by one company to record the amount owed to it by another company or person. Accounts payable is a liability account. Say your company purchases.
What are accounts recievables?
Accounts receivables relates to credit customers (debtors). Although somebody in the accounts receivables department will probably deal with anything relating to sales through to debt collection.
Do you close out allowance for doubtful accounts at end of year?
Allowance for doubtful accounts is a contra-asset account, but it relates for bad-debt expense. When increasing bad debt expense, you credit ADA and debit BDE. Allowance for doubtful accounts is just estimating how much you will need for these accounts, and bad debt expense is saying "see, i knew this would go bad" then you credit ADA. Bad debt expense does need to be closed out though! So... Debit ADA Credit Accounts receivable (This is when expenses are written off) then Debit BDE Credit ADA Bad debt expense needs to be closed out, by crediting expenses and then debiting Retained Earnings.
How does cost accounting relates to management accounting and financial accounting?
cost accounting provides the basic information for both management and financial accounting.The similarities between government accounting and financial accounting is that both involves the balance of accounts.
What are the 4 way proof of cash?
"4 ways proof of cash" is a way to reconcile the cash accounts. It relates to Bank Reconcilation and Auditing.
What is the purpose of an accounts receivable system?
Accounts receivables relates to credit customers. Sales on credit will go through receivables as well as any credit notes and payments for those sales.
A major difference between Calvinism and Lutheranism relates to?
The major difference between the two relates to the emphasis on predestination.
What is the difference between fraternal and paternal?
fraternal relates to brotherhood and paternal relates to fatherhood
What companies use accounts receivable system?
Accounts receivables relates to credit customers. Sales on credit will go through receivables as well as any credit notes and payments for those sales. How_do_you_use_account_payble_and_receivableThese are basic accounts. Accounts Payable is used by one company to record the amount owed to it by another company or person. Accounts payable is a liability account. Say your company purchases.
What is the difference between the markups added by supermarkets and those added by restaurants relates mainly to?
the difference between the markups added by supermarkets and those added by restaurants relates mainly to
What is the difference between actual and visual weight as it relates to balance?
Anal Burger
What is the difference between biosphere and biosphere?
The Biosphere relates to all biotic organisms on earth. Ecosphere relates to all abiotic and biotic organisms on earth.
What is the difference between astm b36.10 and astm b36.19?
ANSI B36.10 relates to Carbon Steel Pipe, whilst ANSI B36.19 relates to Stainless steel pipe.
What is the difference between a frog dorsal side and ventral side?
Ventral relates to the belly or abdomen of the frog.
What is the difference between Urban and Rural?
urban relates to the area surrounding cities and well populated areas. rural relates to a sparsely populated areas, usually farmland or country areas.
What is the difference between SQL2005 and Excel 2007?
SQL is Structured Query Language, and relates to databases. Excel is a spreadsheet application.
What is difference between the difference between brittleness and hardness?
Hardness measures a material's ability to resist permanent deformation, whereas brittleness measures a material's tendency to fail or break without undergoing significant deformation. In other words, hardness relates to the resistance to scratching or indentation, while brittleness relates to the tendency to fracture.
