RE:RE:RE:RE:Q1 to reach $1,500,000 - $2,000,000 for 2020????Howdy, Over the last couple days I have been trying to dig up some details on accounts receivable as I am not an accountant but when you use accrual accounting the accounts receivable would be revenue at the time it was inoviced so the $480,000 should not have anything to do with January revenue count. This would not be the case on Cash basis accounting. On this style of accounting there is no accounts receivable section and would not be included into revenue until you got paid.
Amazon pays on a Net 30 schedule so Dec sales should be in accounts receivable and paid in Jan. Or so they hope. But this should be tallied in the December revenue if I am understanding correctly. based on Accrual accounting methods.
Accounts receivable should change month to month based on what companies like Amazon owe based on their net 30,60,90 terms. Trying to figure out if accounts receivable give us a glimpse into the money made the month before on the balance sheet. When Q2 comes out and we see $450,000 or some amount like this, does this in some degree mean June made $450,000 in revenue from invoices to Amazon and other companies as per the net 30 terms. Hard to say forsure due to a few variables as some companies might be net 60, 90 etc.. and some don't pay ontime.
Anyone an accountant and have any comments on the accounts receivable and how they get added into the revenue of a company? If PKG has Accounts Receivable in the paperwork this should be Accrual style accounting?