Trade receivables (net of allowances of $45 at December 31, 2022 and $37 at December 31, 2021) December 2022: $3,088 December 2021: $2,337 Other receivables (net of allowances of $59 at December 31, 2022 and $49 at December 31, 2021) December 2022: $819 December 2021: $851 Calculate average account receivables. (Also explain if you add/minus/not use net of allowances)
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.
Trade receivables (net of allowances of $45 at December 31, 2022 and $37 at December 31, 2021) December 2022: $3,088 December 2021: $2,337 Other receivables (net of allowances of $59 at December 31, 2022 and $49 at December 31, 2021) December 2022: $819 December 2021: $851 Calculate average
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
