transactions were posted to the following customer account. NAME: Boogie Board Water Wear ADDRESS: 2340 Xtreme Surf Date Item Post. Ref. Debit Credit Balance July 1 Balance 805 6 Invoice No. 406 R42 645 1,450 24 Invoice No. 456 CR56 710 740 Describe each transaction and the source of each posting. July 6 Sold $_______on account to Boogie Board Water Wear. July 24 Cash of $_________ was collected from Boogie Board Water Wear.
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.
wo transactions were posted to the following customer account.
NAME: Boogie Board Water Wear
ADDRESS: 2340 Xtreme Surf
| Date | Item | Post. Ref. | Debit | Credit | Balance |
| July 1 | Balance | 805 | |||
| 6 | Invoice No. 406 | R42 | 645 | 1,450 | |
| 24 | Invoice No. 456 | CR56 | 710 | 740 |
Describe each transaction and the source of each posting.
| July 6 | Sold $_______on account to Boogie Board Water Wear. |
| July 24 | Cash of $_________ was collected from Boogie Board Water Wear. |
Account receivable refers to the amount of sales that are made to the customer on a credit basis and the cash is yet to receive from the customer.
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