Customers paid $22,000 in advance payments for goods that will be delivered later. It was determined that 80% if the goods that were paid for in advance had been delivered to the customers by the end of the year. Prepare the adjusting journal entry.

Customers paid $22,000 in advance payments for goods that will be delivered later. It was determined that 80% if the goods that were paid for in advance had been delivered to the customers by the end of the year. Prepare the adjusting journal entry.

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

Customers paid $22,000 in advance payments for goods that will be delivered later.

It was determined that 80% if the goods that were paid for in advance had been delivered to the customers by the end of the year.

Prepare the adjusting journal entry.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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