The following transactions occurred during July: 1. Received $1,010 cash for services provided to a customer during July. 2. Collected $4,200 cash for services previously completed in June. 3. Received $860 from a customer in partial payment of his account receivable which arose from sales in June. 4. Provided services to a customer on credit, $485. 5. Borrowed $7,100 from the bank by signing a promissory note. 6. Received $1,360 cash from a customer for services to be performed next year. What was the amount of revenue for July? Multiple Choice $1,010. $1,495. $2,855.
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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