year-end closing entries using the following adjusted trial t Cash Accounts receivable Office supplies Office equipment Accumulated depreciation, office Accounts payable Unearned service revenue Long-term notes payable Billi Sol, capital Billi Sol, withdrawals Service Revenue Salary expense Rent expense Depreciation Debit 13,000 20,000 10,300 40,500 10,000 30,000 12,300 Credit 22,000 11,500 6,500 38,000 11,000 51,100
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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