The following data were provided by Ninety Incorporated for the year 2021: Accounts Receivable, beginning 1,100,000 Accounts Receivable, ending 1,400,000 Accounts written off 45,000 Credit Sales 6,890,000 Cash Sales 3,455,000 Sales discounts granted to credit customers 132,000 Allowance for doubtful accounts 230,000 Sales Revenues under accrual basis would be Sales Revenues under cash basis would be
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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.
The following data were provided by Ninety Incorporated for the year 2021:
|
|
1,100,000 |
|
Accounts Receivable, ending |
1,400,000 |
|
Accounts written off |
45,000 |
|
Credit Sales |
6,890,000 |
|
Cash Sales |
3,455,000 |
|
Sales discounts granted to credit customers |
132,000 |
|
Allowance for doubtful accounts |
230,000 |
Sales Revenues under accrual basis would be
Sales Revenues under cash basis would be
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