Using the chart of accounts provided on page 2 of the Exam 2 format document, journalize the following transactions for the month of June. Proper journal formatting is required. Not all accounts provided in the chart of accounts will be used. Transferred cash from a personal bank account in exchange for stock, 1 $50,000 Purchased $8,000 of merchandise inventory by issuing a 90 day, 10% interest paying note. 3 Paid cash for three months advertising in advance, $3,000 At the end of June, the following adjustment data were assembled. 30 Advertising expired during June is $2,000 The unadjusted trial balance indicates Unearned Fees of $4,500. 30 However, only $500 of the balance remains unearned.
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.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images