Description Accounts Receivable Reserves: Allowance for Doubtful Accounts (2023) Allowance for Doubtful Accounts (2022) Balance at Beginning of Year Charged to Expenses Deductions $1,116 $993 $1,119 $888 Balance at End of Year $785 Given the above information, record the journal entries for 2022 and 2023. Also, fill in the highlighted cells above.
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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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