Question

Consider the following transactions by a corporation: On July 5, billed a customer for $6700 for services performed on that day. On August 10, called the client to remind them of the balance owing on their bill. What is the effect on the balance sheet on August 10

Answer 1

Answer:

There is no effect on the balance sheet on August 10, since the customer is still owing the balance.

Explanation:

Based on the scenario, there is no transaction on August 10 that can be recorded.  It is only a note on the records to show that a reminder call was placed to the debtor customer on that date.  An effect would have affected the balance sheet on August 10, assuming the customer responded by settling her account balance.