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To: Sector Investor who wrote (7935)	3/29/1998 10:47:00 PM
From: ncs	Respond to of 42804

>>So you are saying the same dollars were shown both as revenue AND as A/R on the earnings report? I find that hard to believe. I would think that would have to violate good accounting practices. Account receivables do not show up on the income (revenue) report they are an asset and are on the balance sheet. Conversely, reveune doesn't show up on the balance sheet, only the income statement. This is accrual accounting. Revenue is likely booked when it is shipped with the entries on the balance sheet being a debit to inventories and a credit to account receivables. Once payment is received there is a debit to accounts receivables and a credit to cash. Neil

To: Sector Investor who wrote (7935)	3/30/1998 12:11:00 AM
From: Jonathan C. Williams	Respond to of 42804

The entry when you sell product (before you get paid) is: A/R $400,000 (Debit)(That's an asset on the Balance Sheet) Sales $400,000 (Credit) (Revenue on the income statement) That is perfectly fine bookkeeping. Comments/Regards. P.S. I am a CPA