What Is the Primary Difference Between a Debtor's and Creditor's

question 117

Essay

What is the primary difference between a debtor's and creditor's accounting for a modification of terms in a troubled debt restructuring?

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Definitions:

Sales

The total revenue earned from the selling of goods or services, before any deductions are made.

Charge Customer

To bill a customer for goods or services provided, thereby creating an account receivable.

Cash Discount

A deduction from the invoice price that is allowed if payment is made within a specified period.

Credit

An accounting entry recording an increase in liabilities or equity or a decrease in assets, opposite of a debit.