Answer: B. Asset; Debit
The Accounts Recievable account is a(n)_____ account and carries a ____ normal balance.a.Liability;Debit b.Asset;Debit c.Liability;Credit d.Asset;Credit
Account receivables are classified as current assets assuming that they are due within one calendar year or fiscal year. To record a journal entry for a sale on account one must debit a receivable and credit a revenue account . When the customer pays off their accounts one debits cash and credits the receivable in the journal entry.
Accounts receivable - Wikipedia
Factoring (finance) - Wikipedia
Chart of accounts - Wikipedia
Accounts receivable - Wikipedia
A sale is a transfer of property for money or credit. In double-entry bookkeeping a sale of merchandise is recorded in the general journal as a debit to cash or accounts receivable and a credit to the sales account . The amount recorded is the actual monetary value of the transaction not the list price of the merchandise. A discount from list price might be noted if it applies to the sale.
For a particular account one of these will be the normal balance type and will be reported as a positive number while a negative balance will indicate an abnormal situation as when a bank account is overdrawn. Debit balances are normal for asset and expense accounts and credit balances are normal for liability equity and revenue accounts .
Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e. invoices) to a third party (called a factor) at a discount. A business will sometimes factor its receivable assets to meet its present and immediate cash needs. Forfaiting is a factoring arrangement used in international trade finance by exporters who wish to sell their ...
A chart of accounts has sections for the balance sheet (assets liabilities equity) and the income and expense report (revenue expenses other revenu...
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