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Questions and Answers
What is the final status of a paid invoice?
What happens to an invoice when it is marked as uncollectible?
How can an invoice move from an open to a paid status?
Study Notes
- An invoice moves through different statuses from the time it’s created to when it’s paid.
- Draft invoices are still editable and remain unsent.
- Invoices move from an open to paid status when they’re paid.
- Paid invoices are terminal and can never take on another status.
- Voided invoices are conceptually similar to deleting (canceling) them.
- Uncollectible invoices are sometimes created when a customer won’t be able to pay their outstanding bill.
- You can mark an invoice as uncollectible to track the amount owed for reporting purposes.
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Description
Test your knowledge on the lifecycle of invoices, including their statuses such as draft, open, paid, voided, and uncollectible. Understand the implications of each status and how they impact financial tracking and reporting.
