How would you describe the entries to record the disposition of accounts receivables? What is their function?
The account receivable is disposed off when they are received in cash and the entry is made to close the account receivable control account and the customer individual account. After passing the entry the account receivable is converted into cash. [ The account receivable may be disposed off if they are not received for any reason, at this time the account receivable account is closed against
bad debts expense or allowance for bad debts accounts. ]
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