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What are Accounts Receivable?
Amounts owed by customers on account which result from the sale of goods and services on credit.
What is another term used for Accounts Receivable?
Debtors
This report shows all outstanding invoices for customers sorted by aging categories
Aged Receivables Detail/Summary Report
What is a bad debt?
A customer who is never going to pay their account
What is a letter of demand?
A letter advising that payment of an overdue account is due within a certain number of days.
What financial statement or report does Accounts Receivable appear in?
Balance Sheet
What is a receipt?
Proof that a customer has paid money on their account
What is the Customer Ledger?
It is like a statement that shows all the transactions that have occurred with that customer
What is a Doubtful Debt?
A customer who may possibly not pay their account. Or they may! Unsure whether they will or won't
What type of Account is Bad and Doubtful Debts?
Expense
What does an Aged Receivables Detail Report show?
Provides detailed data on outstanding invoices owed by Credit customers and when they are due by.
What type of account is Accounts Receivable?
Asset
Do Sales returns result in an accounting entry in Xero?
Yes
List 3 indicators that a debt may be bad or doubtful.
1. Business Closed
2. Direct communication from customer
3. Debts outside credit terms
4. Any other answered deemed correct by your teacher
In Xero, how do you process a Bad and Doubtful Debt?
Via credit note
What is the Xero chart of account number for Accounts Payable?
610
How do you conduct an Aged Receivables reconciliation?
You get the Aged Receivables Summary and match the total to the balance in the Chart of Accounts for Accounts Receivable
How do you apply a discount in Xero?
Create a credit note and allocate to the Sales returns and Discounts account, then allocate it to the original invoice.
Where will you find a list of all the transactions for a customer in Xero?
Under the Contacts tab
When you write off a bad debt do you also adjust the GST?
What is the accounting entry that occurs when you sell stock on credit (including GST)?
DR Accounts Receivable
CR Sales
CR GST Collected
To increase an Accounts Receivable account the entry would be a....?
DR
This form can be used to print and send customers all of their recent activity or outstanding transactions to let them know their current balance with the company
A Customer Statement
What are the manual journal entries to record a payment made by Accounts Receivable to the business?
Dr Bank, Cr Accounts Receivable
What is the General Journal entry to record a Bad Debt?
Dr Bad and Doubtful Debts
Dr GST Collected
Cr Accounts Receivable