Remove accounting books Remove bookkeeping software Remove Government
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Accounts Receivable (AR) Automation: The Solution To The Collection Problem

Accounting Seed

You debit the $12,500 to AR and credit the same amount to your sales account. This is known as balancing your accounts/books. You recognize this in your accounting with a “bad debt” entry. Without sufficient cash coming in, you can’t pay employees, utilities, or the government.