What is AR and the Journal entries related to it

Question

Accepted Answer

AR stands for Accounts Receivable. Journal entries related to it are transactions that record the amount owed to a company by its customers.

AR is a type of asset account that represents money owed to a company by its customers
Journal entries related to AR include recording sales on credit, receiving payments from customers, and writing off bad debts
Example: Recording a sale on credit would involve debiting AR and crediting sales revenue
Example: Receiving a payment from a customer would involve debiting cash and crediting AR
Example: Writing off a bad debt would involve debiting bad debt expense and crediting AR

Accepted Answer

Accounts receivable (AR) are the money due to a firm for goods or services delivered but not yet paid by customers. Accounts receivable are listed on the balance sheet as a current asset. Any amount of money owed by customers for purchases made on credit is AR. Basic Journal entries and adjustment

Accepted Answer

AR a/c Dr.

To cash a/c

What is AR and the Journal entries related to it

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