Based on the account balances below, what is the total of the debit and credit columns of the adjusted trial balance? Service revenue $5390 Equipment $7550 Cash 2695 Prepaid insurance 1305 Unearned service revenue 5610 Depreciation expense 780 Salaries and wages expense 1190 Accum. depreciation 1450 Common stock 520 Retained earnings 550 O $11550 O $12070 O $13110 O $13520
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.
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