On March 1, 2017 Green company purchase $12,500 of office supplies. On the date green recorded the supplies purchase transaction as follows: Debit. Credit Supplies........12,500 Cash ...............................12,500 The entry above is the only entry green has me related to this item. The balance was zero in the supplies account prior to the above entry. On March 31, 2017 green considered the office supplies and determine there were $9300 remaining. In the general journal below record the required March 31, 2017 adjusting journal entry.
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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