Given the following account balances, prepare an unadjusted trial balance for Bakeshop Corp. as of December 31, 20Y5. • Income Taxes Payable, credit balance $1,200 • Sales Revenue, credit balance $8,750 • PP&E, debit balance $7,500 • Cost of Sales, debit balance $5,500 • Accounts Payable, credit balance $1,240 • Interest Revenue, credit balance $1,500 • Cash, debit balance $2,000 • Rental Expense, debit balance $3,550 • Kim Akinson, Capital, credit balance $2,460 • Long-Term Debt, credit balance $7,400 • Accounts Receivable, debit balance $1,500 • Salaries Expense, debit balance $1,200 • Inventory, debit balance $1,300
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.
Given the following account balances, prepare an unadjusted
• Income Taxes Payable, credit balance $1,200
• Sales Revenue, credit balance $8,750
• PP&E, debit balance $7,500
• Cost of Sales, debit balance $5,500
• Accounts Payable, credit balance $1,240
• Interest Revenue, credit balance $1,500
• Cash, debit balance $2,000
• Rental Expense, debit balance $3,550
• Kim Akinson, Capital, credit balance $2,460
• Long-Term Debt, credit balance $7,400
•
• Salaries Expense, debit balance $1,200
• Inventory, debit balance $1,300
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