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Ch7 AccountsRecExplanation mov

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Hi there this is Jennifer Stauffer so this short video is just to quickly describe what accounts receivable is to you and how they happen and how they are recorded but one thing I want to insist upon accounts receivable is very very important. You have to have someone that's really good at collecting your money. Because being able to collect those monies and being able to collect those cash on time will help you with your operations of your business. Ok, so just kinda wanna reiterate that. You have to have someone really good in your accounts receivable department to be collecting and following up with your customers when they're not paying on time. Alright? Okay. So, accounts receivable, as you know, is asset account belongs in the current asset of the balance sheet it has a normal debit balance, right ? So it's something that your customer owes. you money so if they didn't get to pay you right away they owe you money. So you as a company must maintain a separate account for each customer. That tracks how much that customer purchases has already paid, and still owes. So what you could do is you could set up company names, like if you were to use Quickbooks, you would set up customer names and associate them with you accounts receivable, so say for example I think there might be an example on the next slide. So here's a sale that you've done to CompStore, so you always have to say "To CompStore" right? Or here's a sale that you did for RDA that paid cash. So you're always saying accounts receivable/the company name. Okay? So here's an example of two different scenarios on accounts receivable, July 1st. This one would be you sold something to CompStore for 950 dollars and you credit sales. And the second scenario is you have received money

Video Details

Duration: 6 minutes and 54 seconds
Language: English
License: Dotsub - Standard License
Genre: None
Views: 3
Posted by: herna130 on Jun 21, 2017

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