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    sunfiregirl's Avatar
    sunfiregirl Posts: 11, Reputation: 1
    New Member
     
    #1

    Mar 20, 2008, 02:04 PM
    Accounts receivables
    How do I report receivables on its classified balance sheet?
    Allowances for uncollectible accounts
    Cash
    Accounts receivable
    Accounts payable
    Salaries revenue
    Other assets
    Cost of goods sold and other expenses
    Notes payable
    plonak's Avatar
    plonak Posts: 742, Reputation: 117
    Senior Member
     
    #2

    Mar 20, 2008, 02:11 PM
    Assets and expenses are debits
    Liabilities and Revenues are credits
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
     
    #3

    Mar 22, 2008, 10:07 PM
    For a classified Balance Sheet, you need to separate out the types of assets you have. Current assets are those that will be received or used within on year. As a general rule, Accounts Receivables are collected within one year and so therefore are current.

    The Allowance for Doubtful Accounts is a contra asset which offsets the balance in the Accounts Receivable. It's still a current asset (since it belongs with the A/R), but it's a credit balance so that it subtracts from the receivables. If all the receivables won't be collected, then they aren't worth as much, so we use the allowance account to offset the balance of receivables, by an amount estimated as being uncollectible.

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