Cindy's Curtains 432 Meadowbrook Street Wilcoxson, Georgia 30345-8417 404-555-2488 Problem 19-2 Analyzing a Sourcet Document DATE: June 26, 20-- NO. 1441 A sales slip for Cindy's Curtains is presented at right. Rachel C. Washington 59 Priscilla Drive Park Ridge, IL 60068 SOLD The accountant noticed errors in the calculations. CHARGE CLERK К.С. CASH TERMS Instructions Check all calculations and recalculate the sales tax using a rate of 4 percent. UNIT PRICE QTY. DESCRIPTION AMOUNT 2 Curtain Rods #21847 $ 14.95 $ 29 09 ot bris e1ogbsl essinevbs ori 91 4 Anchor Pieces #23104 15 Feet of ribbon per ft. 6.75 27 00 0.89 13 00 SUBTOTAL $ 69 09n SALES TAX 2 76 Ccoun nton Thank You! TOTAL $71 85
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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