Answered: Credit Sales Cash Collections Jan. 10…

Credit Sales Cash Collections Jan. 10 Stern Company... $4,000 Jan. 20 Stern Company.. $2,000 19 Diaz Brothers 1,600 28 Diaz Brothers 1,600 23 Rex Company. 2,500 31 Rex Company . 1,300

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Following is information from Fredrickson Company for its first month of business.
1. Identify the balances listed in the accounts receivable subsidiary ledger.
2. Identify the Accounts Receivable balance listed in the general ledger at month’s end.

Credit Sales
Cash Collections
Jan. 10 Stern Company...
$4,000
Jan. 20 Stern Company..
$2,000
19 Diaz Brothers
1,600
28 Diaz Brothers
1,600
23 Rex Company.
2,500
31 Rex Company .
1,300

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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