3.5Post the following July transactions to T-accounts for Accounts Receivable, Sales Revenue, and Cash, indicating the ending balance. Assume no beginning balances in these accounts. sold products to customers for cash, $7,500 sold products to customers on account, $12,650 collected cash from customer accounts, $9,500
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
PB14.
LO 3.5Post the following July transactions to T-accounts for
- sold products to customers for cash, $7,500
- sold products to customers on account, $12,650
- collected cash from customer accounts, $9,500
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