Bookkeeping

Before writing off an outstanding check, you should make an attempt to contact the payee and resolve the issue, as the check represents a liability that the business owes. This could happen for several reasons, like the check was lost, forgotten about, or the recipient no longer exists. They would debit the “Other Operating Expense” […]

Accounts receivable affect cash flow by delaying the actual receipt of cash from sales made on credit. Trade receivables are only those receivables generated through the ordinary course of business, such as amounts that customers owe in exchange for goods shipped to them. The accounts receivable classification includes any receivables owed to an organization. This