Calculating an accounts receivable turnover ratio offers insight into how well a business handles the collection of its receivables. By using an AR turnover formula, businesses can determine the ...

Investors should interpret accounts receivable information on a company's balance sheet as money that the company has a reasonable assurance of being paid by its customers at a defined date in the ...

Some companies find that offering incentives to credit customers can help encourage early payments, increasing cash flow and reducing the risk of bad debt. A sales discount is one incentive that many ...

Every business has some dead accounts receivable on its books. Reviving them might not be worth the effort but managing them might be. Any business that lets past-due accounts receivable accumulate is ...

As a business owner, you know that accounts receivable (AR) is money owed to a business by its customers. When you extend credit to a customer for the purchase of goods or services, the balance owed ...

Contra accounts adjust asset values, like equipment depreciation reducing fixed assets. Increased allowance for doubtful accounts may signal rising uncollectable receivables. Companies use contra ...