On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Credit Debit $ 25,900 47,800 Accounts Cash Accounts Receivable. Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation. Accounts Payable Notes Payable (68, due April 1, 2022) Common Stock Retained Earnings Totals 20,800 54,000 19,000 $167,500 $5,000 2,300 29,300 58,000 43,000 29,900 $167,500 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $9,600. The cards are redeemable for merchandise within one year of the purchase date.. January 6 Purchase additional inventory on account, $155,000. January 15 Firework sales for the first half of the month total $143,000. All of these sales are on account. The cost of the units sold is $77,800. January 23 Receive $126,200 from customers on accounts receivable.. January 25 Pay $98,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $5,600. January 30 Firework sales for the second half of the month total $151,000. Sales include $14,000 for cash and $137,000 on account. The cost of the units sold is $83,500. January 31 Pay cash for monthly salaries, $52,800. 6. Record closing entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Credit Debit $ 25,900 47,800 Accounts Cash Accounts Receivable. Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation. Accounts Payable Notes Payable (68, due April 1, 2022) Common Stock Retained Earnings Totals 20,800 54,000 19,000 $167,500 $5,000 2,300 29,300 58,000 43,000 29,900 $167,500 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $9,600. The cards are redeemable for merchandise within one year of the purchase date.. January 6 Purchase additional inventory on account, $155,000. January 15 Firework sales for the first half of the month total $143,000. All of these sales are on account. The cost of the units sold is $77,800. January 23 Receive $126,200 from customers on accounts receivable.. January 25 Pay $98,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $5,600. January 30 Firework sales for the second half of the month total $151,000. Sales include $14,000 for cash and $137,000 on account. The cost of the units sold is $83,500. January 31 Pay cash for monthly salaries, $52,800. 6. Record closing entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances:
Accounts
Cash
Accounts Receivable.
Allowance for Uncollectible Accounts.
Inventory
Land
Equipment
Accumulated Depreciation.
Accounts Payable.
Notes Payable (68, due April 1, 2022)
Common Stock
Retained Earnings
Totals
Debit
$ 25,900
47,800
20,800
54,000
19,000
Credit
$5,000
2,300
29,300
58,000
43,000
29,900
$167,500 $167,500
During January 2021, the following transactions occur:
January 2 Sold gift cards totaling $9,600. The cards are redeemable for merchandise within one year of the
purchase date.
January 6 Purchase additional inventory on account, $155,000.
January 15 Firework sales for the first half of the month total $143,000. All of these sales are on account.
The cost of the units sold is $77,800.
January 23 Receive $126,200 from customers on accounts receivable.
January 25 Pay $98,000 to inventory suppliers on accounts payable.
January 28 Write off accounts receivable as uncollectible, $5,600.
January 30 Firework sales for the second half of the month total $151,000. Sales include $14,000 for cash and
$137,000 on account. The cost of the units sold is $83,500.
January 31 Pay cash for monthly salaries, $52,800.
wal
6. Record closing entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account
field.)
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