Some companies find that offering incentives to credit customers can help encourage early payments, increasing cash flow and reducing the risk of bad debt. A sales discount is one incentive that many ...

Companies report their accounts receivable in the balance sheet based on accounting sales records. Companies might engage in credit sales to allow customers to buy on accounts and record revenue in ...

Accounts receivable (A/R) insurance protects trucking companies against the risk that a customer won’t pay their invoices.

Even though the income statement normally attracts the most attention from investors, the balance sheet is the true starting point for understanding a company’s financial position. It shows how much a ...

Contra accounts adjust asset values, like equipment depreciation reducing fixed assets. Increased allowance for doubtful accounts may signal rising uncollectable receivables. Companies use contra ...