70) On July 8, Ray Inc. sold 100 printers to Office Rental Company at $600 each and offered a 2% discount for payment within 10 days. On July 15, Office Rental Company paid the full amount in cash. What should Ray Inc. record on July 15? A. Cash B. C. Accounts Receivable Cash Accounts Receivable Cash Sales Discounts Accounts Receivable D. Cash Sales Discounts Sales Revenue 60,000 58,800 58,800 1,200 60,000 60,000 58,800 60,000 1,200 58,800
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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.
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JOURNAL ENTRIES
Journal Entry is the First stage of Accounting Process. Journal Entry is the Process of Recording all Financial & Non Financial Transaction in a Proper Format.
Journal entries help to Keep the Records of All Transactions.
Golden Rule of Journal Entry :—
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- Debit the Receiver, Credit the Giver.
- Debit what Comes in, Credit what Goes Out.
- Debit all Expenses & Losses, Credit all Income & Gains.
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