Yo!! What up Tubes???ready??? Jonathan N Dorn licensed CPA state of Florida
strongest CPA in the state of Florida let's get in. here, this is going to be on. you
see the title. Accounts Receivable. you might see it as A/R Accounts Receivable
it is an Asset. Accounts Receivable is an Asset
alright, so you got your DC/ADE/LER
Asset, that right here, a positive side, and Accounts Receivable is an Asset
if you don't know DC/ADE/LER shame on you, watch the old videos, shame anyways so i'm going to try and break
it down, and wanted in my head, I always do small numbers from that you know like
you I like you ten dollars because i can i can see ten dollars i can see what
happens when someone shows me ten dollars. okay anyways this is Account
Receivable, alright i fronted you a widget, which is the accounting term for,
it could be anything
alright, so here's, here i'm giving you a widget,
here's your widget, $10 this is ten dollars, okay you don't have money for it????
Your going to give it to me tomorrow???
why don't you just get this widget tomorrow, then when you have the money??? you need it now ???y
alright so we'll front you ten-dollar widget and you're going to owe me ten
dollars so I'm going to have an Account Receivable for ten dollars
you owe me, i have a receivable, in accounting, it's always about, what I'm
doing. what my business is doing. so you owe me a receivable. ok obviously i
gave you a product and i did not get paid
all right, so look, here's our example, i sell you a widget for ten
dollars. here you go. here's your widget. Give me the $10 I give you
the widget. I want my $10 normally i have to cash transaction done
over with, right, but you say i don't have the cash, i say, why don't you tell me
you didn't have the cash for you call me here , then you know i don't show up
i usually receive cash , but, now I'm receive an IOU, i'll put it on account
now I have an Account Receivable yeah you tell me you're going to pay for it later . alright
so lets a journal entry for this, will do a journal entry, all right
journal entry is, we already said, widgets its anything you know an asset
really any Asset, so this is what you know, its into any Asset, so is the
positive side, this is Assets
this is Asset, if you don't know that's an asset shame on you
anyways, this is the positive, so a negative Asset is a Credit
our credit is widget ten dollars you know we need a Debit, like I said
what did we receive, we didn't receive cash we have an account receivable that's going
to go right there. that's Accounts Receivable Peace !!!