The totals on Maura's trial balance at 30 November 2013 failed to agree. The debit column totalled $230 161; the credit column totalled $189521. The difference was entered in a suspense account. On further examination of the books of account, the following errors were found: 1 Motoring expenses $1700 had been entered in the vehicles account. 2 The total of the sales journal for July $16320 had been posted to the debit side of the purchases account. 3 The total of rent received $4000 for the year had been entered as a debit entry in the rent payable account. 4 Maura had withdrawn goods for her own use $4700 during the year. These goods had been entered on the debit side of the purchases account. Required Prepare: a journal entries to correct the errors ba suspense account.
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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