Nu2U, Inc. Adjusted Trial Balance At June 30, 2021 (in thousands) Account Titles Debit Credit Cash $ 102 Accounts receivable 40 Supplies 23 Prepaid insurance 15 Land 288 Buildings and equipment 450 Accumulated depreciation 63 Trademark 65 Accounts payable 35 Accrued liabilities 15 Unearned revenue 66 Long-term mortgage note payable 125 Common stock 350 Retained earnings, 07/01/20 324 Dividends 45 Commission revenue 475 Wages expenses 160 Supplies expenses 27 Depreciation expense 97 General and administrative expenses 102 Interest expense 32 Income tax expense 7 Totals $1,453 $1,453 Required: Use the above adjusted trial balance for Nu2U to complete the following. Compute the ending retained earnings balance as of June 30, 2021.
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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Nu2U, Inc. Adjusted At June 30, 2021 (in thousands) |
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|
Account Titles |
Debit |
Credit |
|
Cash |
$ 102 |
|
|
|
40 |
|
|
Supplies |
23 |
|
|
Prepaid insurance |
15 |
|
|
Land |
288 |
|
|
Buildings and equipment |
450 |
|
|
|
|
63 |
|
Trademark |
65 |
|
|
Accounts payable |
|
35 |
|
Accrued liabilities |
|
15 |
|
Unearned revenue |
|
66 |
|
Long-term mortgage note payable |
|
125 |
|
Common stock |
|
350 |
|
Retained earnings, 07/01/20 |
|
324 |
|
Dividends |
45 |
|
|
Commission revenue |
|
475 |
|
Wages expenses |
160 |
|
|
Supplies expenses |
27 |
|
|
Depreciation expense |
97 |
|
|
General and administrative expenses |
102 |
|
|
Interest expense |
32 |
|
|
Income tax expense |
7 |
|
|
Totals |
$1,453 |
$1,453 |
Required: Use the above adjusted trial balance for Nu2U to complete the following.
Compute the ending retained earnings balance as of June 30, 2021.
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