QUALITY OFFICE SYSTEMS Adjusted Trial Balance March 31, 2018 Balance Account Title Debit Credit Cash $ 3,700 Accounts Receivable 13,300 Merchandise Inventory 31,500 Office Supplies 6,300 Equipment 42,900 Accumulated Depreciation-Equipment $ 13,900 Accounts Payable 9,200 Salaries Payable 800 Notes Payable, long-term 8,600 Common Stock 18,000 Retained Earnings 4,950 Dividends 41,500 Sales Revenue 235,700 Cost of Goods Sold 107,550 Selling Expense 27,400 Administrative Expense 14,200 Interest Expense 2,800 Total $ 291,150 $ 291,150
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.
Use the following information to answer Exercises E5-23 through E5-25.
The adjusted
Preparing a single-step income statement
Prepare Quality Office’s single-step income statement for the year ended March 31, 2018.
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