Receivables and Payables Flashcards
1
Q
What is a supplier statement reconciliation?
A
They are prepared by credit suppliers on a regular basis and sent to the business to reconcile the transactions to the payables ledger to correct any omissions or errors.
2
Q
What is a contra entry?
A
When a business has a customer that also supplies goods to the business.
3
Q
What is the accounting treatment for a contra entry?
A
Contra entries reduce both receivables and payables.
Dr Payables
Cr Receivables
