Sarasota Co. has equipment that cost $75,700 and that has been depreciated $49,800. Record the disposal under the following assumptions. (a) (b) (c) (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation (a) It was discarded with no cash received. It was sold for $22,200. It was sold for $27,200. (b) (c) Debit Credit
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.
JOURNAL ENTRIES
Journal Entry is the First stage of Accounting Process. Journal Entry is the Process of Recording all Financial & Non Financial Transaction in a Proper Format.
Journal entries help to Keep the Records of All Transactions.
Golden Rule of Journal Entry :—
- Debit the Receiver, Credit the Giver.
- Debit what Comes in, Credit what Goes Out.
- Debit all Expenses & Losses, Credit all Income & Gains.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
