receivable wance for doubtful accounts ns in 2025 include the following. 27,400 $212,600 counts receivable of $144,200 were collected including accounts of $67,600 on which 3% sales dis ,950 was received in payment of an account which was written off the books as worthless in 2024. ustomer accounts of $27,600 were written off during the year.
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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