PA 21. LO 3.6 Prepare an unadjusted trial balance, in correct format, from the following alphabetized account information. Assume all the accounts have normal balances. Accounts payable Accounts receivable Cash Common stock Dividends Equipment Notes payable (due next month) Salaries expense Salaries payable Service revenue Supplies Transportation expense $26,000 8,000 29,000 33,000 9,000 68,000 29,000 42,000 2,000 75,000 5,000 4,000
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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