In the ________ method of tracking accounts receivable,customers pay according to the amount showing on their monthly statement and payments are applied against the total account balance.

Question

Quizplus · Accepted Answer

The balance forward method of tracking accounts receivable involves creating a monthly statement for each customer that shows their total account balance. Customers then make payments based on the balance shown on the statement, and these payments are applied to the overall account balance. This method is commonly used by businesses with a large number of smaller transactions, such as retail stores or service providers. Options A and B are less commonly used methods of tracking accounts receivable, and option D refers to a document that accompanies a payment and provides information about what the payment is for.

In the ________ Method of Tracking Accounts Receivable,customers Pay According