Bramble Corp. issued a $78,000, 10%, 10-year installment note payable on January 1, 2025. Payments of $12,480 are made each January 1, beginning January 1, 2026. (a) What amounts should be reported under current liabilities related to the note on December 31, 2025? (b) What should be reported under long-term liabilities? Current Liabilities Interest Payable Long-Term Liabilities Notes Payable BRAMBLE CORP. Balance Sheet (Partial) December 31, 2025 $ OVO 7800
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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