Journalize the following transactions for Ivanhoe Company. (If no entry is required, select "No Entry for the account titles and enter the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in order presented in the problem.) Sept. 1 5 7 16 22 Purchased supplies for $1.030 cash. Paid $420 cash dividend to stockholders. Received $5.600 down payment from customer for services to be provided in the future. Received $780 cash from a previously billed customer for payment of services provided in the prior month Purchased equipment for $3,100 by paying $1,150 cash and issued a note payable for the balance
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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