Jan. 7 15 23 Credit Sales Balance of Accounts Receivable Austin Co Diaz Co Noble Co. $14,100 7,100 9,400 $ Jan. 17 Austin Co. 24 29 Cash Collections Austin Co. Diaz Co Identify the balances that appear in the accounts receivable subsidiary ledger and the accounts receivable balance that appears in the general ledger at the end of January. Noble Co. $7,700 4,700 9,400 Subsidary Ledger Diaz Co. Noble Co. General Ledge
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.

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