Introduction to Financial Accounting AMIS 211 – Professor Marc Smith 1 Chapter 7, Module 2 Chapter 7, Module 2 Slide 1 AMIS 211Introduction to Financial AccountingProfessor Marc SmithChapter 7 Module 2Chapter 7 Module 2Hi everyone. Welcome back. Let’s continue our discussion of selling our product. And, we are dealing with the Sales Revenue and Accounts Receivable part of that. And, let’s spend some time on Accounts Receivable. Let’s move onto the next slide.
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Introduction to Financial Accounting AMIS 211 – Professor Marc Smith 2 Chapter 7, Module 2 Slide 2 Chapter 7 Module 2: Accounts ReceivableACCOUNTS RECEIVABLE●Accounts receivable represent cash owed to the company.●Accounts receivable come about when the company makes a credit sale (i.e., a sale on account)●Big issue when you sell goods on account…...And remember: Accounts Receivable represent cash that is owed to the company. They come about when we make a sale of goods on account. We sell goods to our customers, who take the goods and say: “I will pay you later.” It is commonplace. It happens all the time in business. Of course, there is one big issue that we have to worry about whenever we sell goods on account. What do you think that is? What is going to be the one concern that we are going to run into when we sell goods on account? Go ahead to the next slide.