Crane Company had the following two transactions related to its delivery truck. 1. Paid $54 for an oil change. 2. Paid $427 to install special shelving units, which increase the operating efficiency of the truck. Prepare Crane Company’s journal entries to record these two transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit 1. enter an account title to record the first transaction enter a debit amount enter a credit amount enter an account title to record the first transaction enter a debit amount enter a credit amount 2. enter an account title to record the second transaction enter a debit amount enter a credit amount enter an account title to record the second transaction
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.
Crane Company had the following two transactions related to its delivery truck.
| 1. | Paid $54 for an oil change. | |
| 2. | Paid $427 to install special shelving units, which increase the operating efficiency of the truck. |
Prepare Crane Company’s
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No.
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Account Titles and Explanation
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Debit
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Credit
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1.
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enter an account title to record the first transaction
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enter a debit amount
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enter a credit amount
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enter an account title to record the first transaction
|
enter a debit amount
|
enter a credit amount
|
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|
2.
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enter an account title to record the second transaction
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record the second transaction
|
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