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Accounting for Receivables and Payables
I recommend accountant should record revenues and not wait. Usually, logistical time does not coincide with actual time. For instance, that happens when a customer pays by post-dated cheque but in the cash flow account is the way of looking at business' available cash.
Accountant Shouldn't Wait and record the Entry as per the requirement. Either as Accounts Recievable.
Accountant Should not wait. He has to record entry in the book.
As per Accounting Standard "Revenue Recognition" when risk and reward transfer you can charged in as a income.
I recommend accountant should record revenues and not wait for the collection to happen.
ACCOUNTANT Should not wait and make the entry at the time of delivery of goods.
for tax purposes, accountants should record sales even if the amounts were not collected from customers. If defaults happen as some feared, the amounts can be after pursuation be recorded as a bad-debt or do a provision.
I recommend that Accountant should'nt wait for revenue collection from Customers & charge them to expense account.
May be we have to consider realisation concept first
goods or services are provided for the buyer;the buyer accepts liability to pay for the goods or services;the monetary value of the goods or services has been established;the buyer will be in a situation to be able to pay for the goods or services.
it is only when you can be reasonably certain as to how much will be received thatyou can recognise profits or gains.
