Author: Muhammad Yamin

If the customer later pays off the balance owed, you would then make a second journal entry that reverses the original transaction. This second journal entry would include a debit to Sales and a credit to Accounts Receivable....

On Propensity’s statement of cash flows, this amount is shown in the Cash Flows from Operating Activities section as an adjustment to reconcile net income to net cash flow from operating self-employment taxes activities. Note...