%24 18.7 SThe trial balance of Z failed to agree, the totals being: DEBIT $836,200 CREDIT $819,700 A suspense account was opened for the amount of the difference and the following errors were found and corrected: The total of the cash discount received column in the cash book had not been posted to the discount received account. The figure for discounts received was $5,100. 1 2 A cheque for $19,000 received from a customer was correctly entered in the cash book but was posted to the control account as $9,100. What will the remaining balance be on the suspense after the correction of these
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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