14.1 How are transactions relating to trade receivables recorded? Flashcards
1
Q
Where is the amount owed to a business that provides goods and services to a customer without receiving immediate payment from the customer recorded in?
A
Trade Receivables Account
2
Q
What is the ‘Trade Receivables’ account?
A
A current asset in the Balance Sheet. It represents the amounts of money that the business expects to receive from its debtors in the near future.
3
Q
What is the credit period that businesses usually give to their customers?
A
Between one to three months
