What does a firm's ending balance of Retained Earnings represent?
In the above formula, the average net receivables are computed by using the beginning accounts receivables balance and the ending balance of the year.
Regardless of whether the ending balance in the Factory Overhead account is a debit or credit, any remaining balance must be disposed of before a new accounting period begins.
It is required to separately list the beginning balance, ending balance and proportion to total amount of payables according to their categories (like other payables and advance payments, etc. );
