B COMPANY Worksheet For the year ended December 31, 2020 Account titles Trial Balance Dr Cr Cash P2,320,000 Accounts receivable 2,440,000 Supplies Accounts payable Unearned revenue 1,880,000 P1,120,000 240,000 B, Capital Service revenue 3,600,000 2,400,000 Salaries expense Miscellaneous expense 560,000 160.000
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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.
Prepare a classified Statement of Financial Position, according to liquidity of the accounts.
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