Accounts Receivable department undertakes the following functions: 1. Issue invoice for goods/services rendered. 2. Record the invoices to the resp...

Account Receivable A/C Dr To Sales A/C Cr

Cash or Bank A/C Dr Account Receivable A/C Cr

Cash or Bank A/C Dr Sales Discount A/C Dr Account Receivable A/C Cr

Sales Return A/C Dr Accounts Receivable A/C Cr

Accounts Receivable is the amount received upon due date from customers. Hence, it is reported as a current asset in the balance sheet.

Debtor days mean the average days to receive payments from clients. You can calculate Debtors Days using the following formula: Debtor Days = (acco...

Recoveries of bad debts are the amounts received by a business against the uncollectible written-off debts. They are reported as receivable under t...

Bad debts decrease the accounts receivable amount. These bad debts are added to Operating Expenses in the income statements. Hence, they are contra...

1. Direct Write-off Method. 2. Allowance Method.