For example, in the assets section, accounts related to cash might have numbers starting with 1100, while accounts related to accounts receivable might start with 1200. Expansion. Leave room for future expansion or addition of new accounts by reserving unused numbers or using a range for ...
Accounts receivableis acurrent asset account. The selling company records that it has the right to collect the amount from the customer.² Accounts payable, as mentioned earlier, is a correspondingcurrent liability account. In this case, the customer records in their records that they owe the a...