Explain calculation of the average balance in accounts receivable.
Question:
Explain calculation of the average balance in accounts receivable.
Accounts receivable:
Individuals or entities that have purchased goods and services from a company but have not yet paid for them are referred to as accounts receivables. It is accounted as an asset and is shown on the balance sheet.
Answer and Explanation: 1
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View this answerThe average accounts receivable is calculated by dividing the sum of the opening and closing accounts receivable balances by two. The opening and...
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Chapter 7 / Lesson 1Learn what accounts receivables are and why they're important. Understand the definition of accounts receivable, look at different types of accounts receivable, and examine examples.