Journalize the entries to reverse the accounts at January 1. (Hint: One of the accounts was affected by two different adjusting entries). 2. Unadjusted Trial Balance Credit Balances Adjusted Trial Balance Debit Balances 5,000 32,600 100 Credit Balances Debit Balances 5,000 Cash Accounts Receivable 32,000 3,600 4,000 11,000 Supplies Prepaid Insurance Equipment Accumulated Depreciation Wages Payable Unearned Fees 1,400 11,000 8,900 22,000 69,000 1,700 2,000 3,500 22,000 75,000 Ann Cole, Capital Fees Earned Wages Expense Supplies Expense Insurance Expense Depreciation Expense Total 44,300 46,300 3,500 2,600 1,700 104,200 99,900 99,900 104,200
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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