Accounts receivable subject and debit/credit direction (what is the meaning of negative accounts receivable)

1. A negative number of accounts receivable indicates advance receipts.

2. Because accounts receivable belong to a dual subject, they can replace accounts receivable in advance.

3. Accounts receivable refer to the amount that an enterprise should collect from the purchasing unit due to the sale of goods, products, provision of labor services and other businesses in the normal course of business, including taxes that should be borne by the purchasing unit or the labor service receiving unit, various freight and miscellaneous charges paid on behalf of the purchasing buyer and other accounts receivable belong to a dual subject. The so-called dual account refers to the account that can be used to calculate assets and expenses, It can also be used to account for liabilities, owner's equity and income.

4. These accounts have either a debit balance or a credit balance.

5. Accounts receivable can be used to account for the economic business of an enterprise that has both claims and debts with the enterprise.

6. When the ending balance of the account is in the credit, it indicates that the enterprise has undertaken the debt, which is a "payable" nature and belongs to the liability. At this time, the account is equivalent to "advance receipts"; When the ending balance of the account is in the debit, it indicates that the enterprise's claim on the other party is a "receivable" property and belongs to assets.