72 2 3 4 5 6 Account Cash 7 Accounts Receivables. 8 Supplies (141,050-76050) A 9 Prepaid Rent (375,000-300,000) 10 11 12 Other Creditors Salary Payable CD Shipping Agent Ltd Adjusted Trial Balance As at 31 December 2022 Prepaid Insurance (150,000-120,000) Furniture and Equipment 16 Capital Stock 17 13 14 Unearned Fees (200,000-180,000) 15 Insurance Expense Fees Earned (890,000+180,000) 18 Salary Expense (240,000+140,000) 19 Rent Expense 20 Supplies Expense 21 Utilities Expense 22 Advertising Expense 23 24 Dr B 211,200 337,500 65,000 75,000 30,000 600,000 120,000 380,000 300,000 76,050 250,000 15,800 2,460,550 Cr C 130,000 140,000 20,000 1,100,550 1,070,000 2,460,550
Bad Debts
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.
Using the
Prepare the post-closing trial balance.
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