Given the following adjusted trial balance, what will be the totals for the debit and credit columns of the post-closing trial balance? Debit Credit Cash $1,662 Accounts receivable 2,098 Inventory 3,124 Prepaid rent 86 Equipment 300 Accumulated depreciation-equipment $52 Accounts payable 82 Unearned service revenue 172 Common stock 206 Retained earnings 6,610 Service revenue 318 Interest revenue 56 Salaries and wages expense 160 Travel expense 66 Totals $7,496 $7,496
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 adjusted
Debit Credit
Cash $1,662
Inventory 3,124
Prepaid rent 86
Equipment 300
Accounts payable 82
Unearned service revenue 172
Common stock 206
Service revenue 318
Interest revenue 56
Salaries and wages expense 160
Travel expense 66
Totals $7,496 $7,496
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