A company that provides a service or product to a customer on credit has an __________ from that customer.

Q: Which of the following is classified as current non-trade receivabke? A. Advances to affiliates B.…

A: Solution : Which of the following is classified as current non-trade receivable? A. Advances to…

Q: Which of the following will be the Correct source document assuming that your business received…

A: The various documents are prepared to be provided to customer or received from supplier.

Q: Explain how does the trade credit is offered on open account.

A: Trade credit is the easiest and most important source of short-term finance available to businesses.…

Q: A credit memorandum is prepared when * an employee does a good job goods are sold on credit O goods…

A: Solution: A credit memorandum is prepared when "goods that were sold on credit are returned".

Q: What is a credit memo? Why it is used? Give an example?

A: Credit Memorandum: This is a document by the seller for the reduction in the amount owed by the…

Q: Accounts receivable arise from credit sales to customers by both retailers and wholesalers. True or…

A: Accounts Receivables includes Debtors and Bills Receivables.

Q: When a customer (buyer) returns merchandise purchased on credit,what is to be done?

A: Sales Returns: It is the merchandise returned by a buyer to a seller due to many reasons like excess…

Q: What is the name of the document used for recording credit sales

A: Credit sales means when goods and services are being sold to customers on credit basis and customers…

Q: According to ASC 606, how should a referral credit be recorded in your financial statement, as a…

A: ASC-606 solely deals with the Concept of Revenue Recognition and in order to bring uniformity in…

Q: A credit balance to a client’s accounts payable account representing right to receive payment for…

A: Accounts payable accounts are consisting of those supplier accounts from whom business has made…

Q: Give an example of consumer credit and explain the process how it is processed from application to…

A: The customer is allowed to ask for credit in case of no availability of funds. The suppliers provide…

Q: Accounts receivable are best described as a. Liabilities of the company that represent the amount…

A:

Q: What should be in the credit file

A: Following is the contains in credit file

Q: The customers of the company would like to know its credit worthiness and the terms of payment. O…

A: Accounting concept states the basic principles, assumptions as well as rules that work on the…

Q: the customer of the details by issuing a sales invoice a. b. purchase invoice credit memorandum С.…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: Is it a credit memo issued by a vendor or a debit memo issued by a purchaser? What's the difference?

A: The difference will be explained:

Q: If a company makes a journal entry that records a debit to “Rent Expense,” that journal entry also…

A: Journal: Recording of a business transactions in a chronological order.

Q: ow to record credit sale in an entrie?

A: Credit sales mean the amount which is delayed to paid but agreed to pay in future by the consumer.

Q: Sales made to person on credit should be credited to which of following ledger accounts

A: Accounting is essential to operating a company since it allows businesses to track income and…

Q: What would a credit manager do if a sales order received caused a customer to exceed its credit…

A: When orders are received from new customers, the system automatically accesses the credit rating…

Q: if a customer owes interest on a bill, accounts receivable is debited, and interest expense is…

A: Accrued interest receivable: the accrued interest receivable means the interest income of a company…

Q: A "receipt on account" results in a credit to: An A/P account Bank An A/R account Capital

A: Receipt on account means, cash received from previously made credit sales.

Q: The liability created by a business when it purchases coffee beans and coffee cups on credit from…

A: Option (2) Accounts Payable is the correct answer

Q: What section of FASB provide guidance on referral credit paid to customers?

A: FASB stands for "Financial Accounting Standards Board , which was established in the year 1973.It is…

Q: When recognizing revenue, a company has a performance obligation when it agrees to receives cash…

A: Solution: When recognizing revenue, a company has a performance obligation when it agrees to…

Q: Which of the following situations may give rise to unearned revenue? O Providing trade credit to…

A: The Unearned revenue is the cash received feom customers but services would be provided in the…

Q: If merchandise purchased on account is returned, the buyer can inform the seller of the details by…

A: An invoice refers to a bill that is issued by a seller to the buyer. It specifies details related to…

Q: Credit selection involves the application of techniques to determine which customers should receive…

A: Credit selection refers to the decision to whether the company should extend the period or the…

Q: Goods returned by customer will be debited to which account?

A: When a customer returns the goods sold to him it is called sales return i.e. it reduces the income…

Q: In general, revenue is recognized whena. The sales price has been collectedb. A purchase order has…

A: Revenues: Revenues are earnings from operations of a business. The operating activities are sale of…

Q: not necessary

A: The option is given as,

Q: A credit bureau, AKA credit agencies, are companies that collect credit information about…

A: A credit bureau can be defined as a company that gathers and researches information about…

Q: it is urgent  A promise received from a business's customers to pay for goods and services that…

A: Introduction Sales may be defined as the activity of exchanging goods and services for money. It may…

Q: What accounts are used to recognize a retailer’s purchase from a manufacturer on credit?A. accounts…

A: Purchase of goods on credit means inventory has been purchased but payment has not been made yet.…

Q: Does the sender (maker) of a debit memorandum record a debit or a credit in the recipient’s account?…

A: Debit memorandum or debit note is a type of document used by the customer or buyer of goods to…

Q: When a company decides to extend credit to consumers, it is making an investment decision in: a.…

A: A company often decides to extend credit to consumers. The decision is made on the logic that credit…

Q: A formal written instrument of credit that has been received for the amount a customer owes is…

A: The written instruments includes voucher, promissory note, invoice, etc.

Q: Effective credit management involves establishing credit standards for extending credit to…

A: Accounts receivable: When the seller sold the goods to the buyer on a credit basis of the specified…

Q: Internal sources of credit information t

A: Second option is wrong because financial statements are published and can be used as an external…

Q: What happens when a client (buyer) returns credit-purchased goods?

A: The Answer:

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.