#receivable-insights

A "markup online calculator" is a digital tool typically used to calculate the markup on products or services.  1. Purpose : It helps businesses, especially retailers and service providers, determine the selling price of their goods or services. The markup is added to the cost price to cover expenses and profit. 2. Functionality : Users input the cost of the product or service and the desired markup percentage. The calculator then computes the selling price. 3. Markup Formula : The typical formula used is: Selling Price = Cost Price + (Cost Price × Markup Percentage). 4. Benefits : These calculators are convenient for quickly determining prices, ensuring a consistent profit margin across products or services. 5. Accessibility : Such calculators are often available online, making them easily accessible through a web browser. They can also be part of financial management software or apps. 6. Use Cases : Businesses use markup calculators to price new products, adjust prices in r...

Accounts receivable refers to the money owed to a company by its clients or customers for goods or services that have been delivered but not yet paid for. It is recorded as an asset on the company's balance sheet because these are funds expected to be received in the future. Accounts receivable typically arise in companies that offer their goods or services on credit, meaning they allow payment to be made after the delivery of goods or completion of services. Managing accounts receivable is important for maintaining liquidity and the financial health of a company, as long-term or uncollectible debts can negatively impact its financial results. Practical Example Scenario: Imagine a company, Bright2Tech Solutions, that specializes in providing software development services. Bright2Tech offers its services on credit to its clients, allowing them to pay within 30 days of invoice issuance. Situation: In January 2024, Bright2Tech completed a project for a client, Inc2Class Inc., and iss...