Material returned back to store from production and general supplies was correctly recorded as: "Debit Material, Debit FOH & Credit Work in process" "Debit Work in process, Debit FOH & Credit Material" No entry is prepared since no material is returned from production if once issued. "Debit Material, Credit FOH & Credit Work in process"
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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"Debit Material, Debit FOH & Credit Work in process"
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"Debit Work in process, Debit FOH & Credit Material"
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No entry is prepared since no material is returned from production if once issued.
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"Debit Material, Credit FOH & Credit Work in process"
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