Blue Spruce Industries purchased 6,200 units of direct material on account for $18,000, when the standard cost was $18,600. Later in the month, Blue Spruce Industries issued 5,700 units of direct materials for production, when the standard units were 5,960. Journalize the transactions for Blue Spruce Industries to account for this activity. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries. before credit entries.)
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.
Subject: acounting
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