Basic Accounting Knowledge: Accounts Receivable

1. This subject accounts for the amount of money that an enterprise should receive from sales activities such as selling goods and providing services.

In accordance with the original insurance contract, the enterprise (insurance) should pay premiums to the policyholder, which can be changed to "1122 premium receivable".

The fees and commissions payable by enterprises (Finance) may be changed to a "1124 Commission and commission" subject and detailed accounting is made according to the debtor.

By selling goods and providing services, the contract or agreement price is collected by deferred way, and essentially has financing.

Two, undergraduate accounts can be detailed according to debtors.

Three, the enterprise accounts receivable, according to the amount of receivables, debit this subject, according to the confirmed business income, credit "main business income", "fees and commission income", "premium income" and other subjects.

When we withdraw accounts receivable, we will borrow "bank deposits" and other subjects, and credit this subject.

The amount of tax on value-added tax should also be dealt with accordingly.

The packing charge and miscellaneous charges advanced by the purchasing unit will debit the subject and credit the "bank deposit" and other subjects.

When the replacement fee is recovered, the bank deposit account is credited and the subject is credited.

Four, debt restructuring of enterprises and debtors should be handled separately in different ways of debt restructuring.

(1) if the amount of debt paid by the debtor is less than the book value of the account receivable, it shall be debited according to the amount actually received, such as "bank deposits" and other subjects. According to the provision for bad debts prepared by the restructured creditor's rights, the account of "bad debt preparation" shall be debited, and the account shall be credited according to the book balance of the restructured creditor's rights, and the account of "extra expenses" shall be debited according to its balance.

If the debtor's debts are paid more than the book value of the accounts receivable, he shall debit "bank deposits" and other subjects according to the amount actually received. According to the provision for bad debts prepared by the restructured creditor's rights, he will borrow the account of "bad debt preparation", and credit the account according to the book balance of the reorganization of the creditor's rights.

The following debt restructuring involves reorganization of claims for impairment, and shall be dealt with in accordance with this regulation.

(two) accepting the debtor's non cash assets used to settle debts, he should borrow the fair value of the non cash assets, such as "raw materials", "inventory commodities", "fixed assets", "intangible assets" and other subjects, and credit the account according to the book balance of the restructured creditor's rights, and credit "bank deposits" and "taxes payable" and other related items according to the relevant taxes and other fees that should be paid.

The VAT input tax should be dealt with accordingly.

(three) to convert creditor's rights into investments, it is necessary to debit "long-term equity investment" according to the fair value of the shares, and credit the subject according to the book balance of the restructured creditor's rights, and credit "bank deposits" and "taxes payable" and other related items according to the relevant taxes and other fees that should be paid.

(four) in order to make liquidation by modifying other debt conditions, the subject shall be debited according to the fair value of the creditor's rights after modification of other debt conditions, and the credit shall be credited to the account according to the book balance of the reorganization of the creditor's rights, and the account of "extra expenses" shall be debited according to its balance.

Five. The debit balance at the end of the course reflects the accounts receivable that the enterprise has not yet recovered. If the credit balance is at the end of the term, it reflects the accounts receivable from the enterprise.