The accounts receivable turnover formula tells you how quickly you are collecting payments, compared with your credit sales. For example, if credit sales for the month total $300,000 and the account receivable balance is $50,000, then the turnover rate is six. The goal is to maximize sales, minimize the receivable balance, and generate a large […]
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Companies prepare bank reconciliation statements as a comprehensive accounting comparison tool. A company can ensure that all payments have been processed accurately by comparing their internal financial records against their bank account balance. Bank reconciliation statements are also important baii plus bond valuation for alerting a company in case of fraud or error. To be
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At the end of the month, the amount column in the journal is totaled. This total is then posted as a debit in the accounts receivable control account and as a credit to the general ledger sales account. In turn, the individual entries in the sales journal are posted to the respective accounts in the
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