The entries in a receivables' ledger control account for the first accounting period were: Sales $250,000 Bank $225,000 Returns $2,500 Irrecoverable debts $3,000 Returned unpaid cheque $3,500 Contra payables ledger account $4,000 What is the balance on the receivables’ ledger control account at the end of the accounting period?
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.
The entries in a receivables' ledger control account for the first accounting period were:
Sales $250,000
Bank $225,000
Returns $2,500
Irrecoverable debts $3,000
Returned unpaid cheque $3,500
Contra payables ledger account $4,000
What is the balance on the receivables’ ledger control account at the end of the
accounting period?
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