Fill Form 1120 Schedule M 3 Receivable 2019-2024

So, is in far - till now, we've looked at the first, the most liquid current asset that we have, cash and cash equivalents. We also talked about the bank reconciliation statement. I am sure you remember the lovely jives the wreck tot he right there. Now, let's move on and look at accounts receivable. So, you sell out goods on credit and these are accounts which are receivable. So, cash that is realizable. Remember, I said recognize revenue when it's earned. So, you've sent out the goods, you've earned the revenue, and it is realizable, it's receivable. So, that is accounts receivable. Now, often when you sell goods, you give a lot of trade discounts. So, you always recognize sales at net of trade discounts. So, to your wholesalers, you give a bigger discount than you give to your retailers. Now, let's talk about cash discounts. So, when you drink trades, you often find terms such as 2/10 net 30. Now, this means that we're gonna be giving the accounts receivable a 2% discount. So, this is a 2 percent discount if he pays back within 10 days. And if he does not want to take the discount, he still has to pay within 30 days. So, the credit term is 30 days, but he would get a 2 percent discount if he pays within 10 days. So, basically, he is getting this 2 percent discount for paying 20 days to early. So, he has 30 days of time to pay, but he pays 20 days too early, he gets a 2 percent discount cash discount. Now, when you have such trade terms where you know you're giving cash discounts if they pay up early, you could be recording your sales at gross or at net. So, let's look...