The movements of a customer's credit account in a warehouse were: Balance registered on February 14: $4,500 Position February 27: 1950 Subscription on March 31: 2,300 Title April 15: 10,000 Pass 30 April: 5,630 Calculate the account balance as of April 30. Considering a rate of 22% per year. Date Concept Charges payment Interests Balance cutting
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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