عملاء محليين

A: Accounts Receivable are amounts owed to a company by its customers for goods or services sold on credit. These amounts represent a current asset on the balance sheet and are expected to be collected within one year.

A: When a credit sale is made, the following entry is recorded: Dr. Accounts Receivable (for the full invoice amount including tax), Cr. Sales Revenue (for the sales amount excluding tax), Cr. Output VAT (for the tax amount).

A: The Allowance for Doubtful Accounts is an estimate of the portion of accounts receivable that may not be collected in the future. It is created with the entry: Dr. Bad Debt Expense, Cr. Allowance for Doubtful Accounts. The allowance appears as a deduction from accounts receivable on the balance sheet.

A: When a specific debt is determined to be uncollectible, it is written off with the entry: Dr. Allowance for Doubtful Accounts, Cr. Accounts Receivable (specific customer). This entry does not affect the income statement because the expense was already estimated when the allowance was created.

A: Accounts Receivable is a balance sheet asset representing amounts owed by customers, while Service Revenue is an income statement account representing the value of services provided. When a service is provided on credit, Service Revenue is credited and Accounts Receivable is debited.