You've earned the revenue but not got paid for it yet. In other words, despite earning it, you're yet to receive the money, and hence receivables. If you were referring specifically to 8,638, that's the portion you will have earned by the end of the first year. If you compound that amount for 3 years at 5%, you'll get 10,000
Thank you so much
Very helpful
Thank you sir.
why do you book receivables of 8638?
& Revenie entry at today of 8638? I dont get it.
You've earned the revenue but not got paid for it yet. In other words, despite earning it, you're yet to receive the money, and hence receivables. If you were referring specifically to 8,638, that's the portion you will have earned by the end of the first year. If you compound that amount for 3 years at 5%, you'll get 10,000