Garcia Sales Balance Debit Credit Credit Date Post. Ref. Debit Apr. 1 450 450 CR.8 25 5.6 3,600 1,100 3,600 29 5.6 4,700 Leewright, Inc. Balance Date Post. Ref. Credit Debit Credit Debit 2,800 5,400 3,900 Apr. 1 15 5.6 2,600 1,500 CR.8 29 Sally Jones Balance Debit Credit Date Post. Ref. Debit Credit 1,100 Арг. 1 1,100 CR.8 400 5.6 400 11 400 21 CR.8 2,000 2,000 24 5.6
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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.
A fire destroyed certain accounting records of Green Books. The controller, Marilyn Green, asks your help in reconstructing the records. All of the sales are on account, with credit terms of n/30. The only accounting record preserved from the fire is the
Requirements
- Determine the beginning and ending balances of Accounts Receivable.
- Determine the sales on account in the month of April.
- Determine total cash receipts on account from customers during April
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