In maintaining the accounts receivable, the method that applies a customer’s payment to the account balance without consideration of which unpaid invoices the customer is paying is: Turnaround Open-invoice Balance-forward Cycle billing Matching
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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.
In maintaining the
Turnaround
Open-invoice
Balance-forward
Cycle billing
Matching
The balance forward method is used to apply a customer payment to the account balance. It does not consider for which unpaid invoices the customer is paying.
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