Accounts Payable and Accounts Receivable Specialist Interview Questions and Answers

Accounting entries for AP and AR process involve recording expenses and revenues, tracking payments and receipts, and reconciling accounts.

• AP entries involve recording expenses and liabilities, such as invoices from vendors

• AR entries involve recording revenues and assets, such as sales invoices to customers

• Payments made to vendors are recorded as credits to AP and debits to cash/bank account

• Receipts from customers are recorded as credits to AR and debits to cash/bank account

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Entries for unbilled invoice are recorded as accrued revenue in accounts receivable and revenue in accounts payable.

• Accrued revenue is recorded in accounts receivable until the invoice is billed

• Revenue is recorded in accounts payable until the invoice is billed

• Once the invoice is billed, the entries are reversed and recorded in the appropriate accounts

AR process involves invoicing customers for goods or services provided and tracking payments received.

• Generate and send invoices to customers

• Record payments received from customers

• Follow up on overdue payments

• Reconcile accounts receivable to ensure accuracy

• Provide reports on outstanding balances to management