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What Entry Would Be Made in Account Receivable When a Company

question 14

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What entry would be made in account receivable when a company has billed its client $230,000 during the financial year and client have sent in payments totalling $87,908.The business uses cash-based accounting?


Definitions:

Tax Rate

The proportion, usually expressed as a percentage, at which an individual or corporation is taxed.

Net Income

The total profit or loss of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Net Working Capital

A financial metric that represents the difference between a company's current assets and its current liabilities.

Total Assets Ratio

A financial metric that compares the total assets of a company to its sales or revenues, indicating how efficiently a company uses its assets.

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