How does a credit balance affect Accounts Receivable?
  • 28 Nov 2023
  • 1 Minute to read

How does a credit balance affect Accounts Receivable?


Article Summary

When a family (or agency) has paid in advance or overpaid, their ledger card will have credit balance (negative balance). This reduces your accounts receivable. For example, if ten families owed you a total of 1,000 and one family had a credit of 200, your accounts receivable would be 800.


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