Hey, Patrick! Thank you so much for creating a course on financial accounting. Im taking my exam in 2 days and if it were not you I think I would be stressing badly right now. Im still not 100% confident but I have 2 days! That's an enternity for a university student. Appreciate your hard work and wish you luck!
I don't see what this has to do with collecting money. A/R is recorded when people owe you money - the payment is outstanding. I understand that A/R goes down once they pay, but taking the average just seems to me like the average amount of money that is owed to you throughout the year. I thought credit sales and account receivable were same thing, but later I realized they are same thing but both are recorded differently, credit sales is recorded as a constant amount but account receivable changes (gets lower) as the company gets cash.
Hey, Patrick! Thank you so much for creating a course on financial accounting. Im taking my exam in 2 days and if it were not you I think I would be stressing badly right now. Im still not 100% confident but I have 2 days! That's an enternity for a university student. Appreciate your hard work and wish you luck!
I don't see what this has to do with collecting money. A/R is recorded when people owe you money - the payment is outstanding. I understand that A/R goes down once they pay, but taking the average just seems to me like the average amount of money that is owed to you throughout the year. I thought credit sales and account receivable were same thing, but later I realized they are same thing but both are recorded differently, credit sales is recorded as a constant amount but account receivable changes (gets lower) as the company gets cash.