May 30: Paid telephone bill for May, $260. Description Post. Ref. Debit Credit May 31: Paid electricity bill for May, $810. Description Post. Ref. Debit Credit May 31: Received cash from cash clients for fees earned for the period May 26-31, $3,300. Description Post. Ref. Debit Credit May 31: Provided services on account for the remainder of May, $2,650. Description Post. Ref. Debit Credit May 31: Kelly withdrew $10,500 for personal use. Description Post. Ref. Debit Credit
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.
![May 30: Paid telephone bill for May, $260.
Description
Post. Ref.
Debit
Credit
May 31: Paid electricity bill for May, $810.
Description
Post. Ref.
Debit
Credit
May 31: Received cash from cash clients for fees earned for the period May 26-31, $3,300.
Description
Post. Ref.
Debit
Credit
May 31: Provided services on account for the remainder of May, $2,650.
Description
Post. Ref.
Debit
Credit
May 31: Kelly withdrew $10,500 for personal use.
Description
Post. Ref.
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff1f5af04-8287-4d13-a22c-6d4fe42fe9ce%2F6f8b947f-b3e2-4d4e-b3b3-5f345c582620%2Frlgcm5o_processed.png&w=3840&q=75)
![May 17: Received cash from cash clients for fees earned during the period May 1-16, $8,360.
Description
Post. Ref.
Debit
Credit
May 20: Purchased supplies on account, $735.
Description
Post. Ref.
Debit
Credit
May 21: Provided services on account for the period May 16-20, $4,820.
Description
Post. Ref.
Debit
Credit
May 25: Received cash from cash clients for fees earned for the period May 17-23, $7,900.
Description
Post. Ref.
Debit
Credit
May 27: Received cash from clients on account, $9,520.
Description
Post. Ref.
Debit
Credit
May 28: Paid part-time receptionist for two weeks' salary, $750.
Description
Post. Ref.
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff1f5af04-8287-4d13-a22c-6d4fe42fe9ce%2F6f8b947f-b3e2-4d4e-b3b3-5f345c582620%2Fnl1z783_processed.png&w=3840&q=75)
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