Accounts Receivable Flashcards by Miriam Hayashi | Brainscape

Q

Current Ratio =

A

Current Assets / Current Liabilities

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Q

Working Capital =

A

Current Assets - Current Liabilities

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Q

When previously written off AR is collected

A

Debit AR & Credit Allowance for Doubtful Accounts [contra asset] so no net change to CA or CL
Debit Cash & Credit AR
No net change to Current Ratio or Working Capital

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