Consider the following information from a company's unadjusted trial balance at December 31, 2018. All accounts have normal balances. Accounts Receivable $ 5200 Accounts Payable 685 Cash 1770 Service Revenue 6410 Common Stock 4700 Equipment 5600 Insurance Expense 435 Land 4500 Notes Payable, Due 2021 4700 1270 Notes Receivable, Matures 2019 Prepaid Insurance 435 Rent Expense 1435 Retained Earning, January 1, 2018 7920 Salaries and Wages Expense 3770 What is the total of the debit side of the unadjusted trial balance? O $19,715. O $15,915. O $19,030. O $24,415.
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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