XYZ company has the following trial and adjusted trial balances at the end of the year. Trial Balance Adjusted Trial Balance Debit Credit Debit Credit Cash $ 5,410 5,410 Accounts Receivable. . 4,600 6,300 Supplies . 900 320 Prepaid Insurance... 1,800 1,650 Equipment. Accumulated Depreciation- 8,000 8,000 Equipment. $ 180 Accounts Payable . $ 5,400 5,400 Salaries and Wages Payable.. 400 Share Capital-Ordinary.. 12,000 12,000 Dividends... 600 600 Service Revenue.. 6,200 7,900 Maintenance and Repairs Expense. . 290 290 Supplies Expense. Depreciation Expense.. 580 180 Insurance Expense. . 150 ........... Salaries and Wages Expense.. 2,000 2,400 $23,600 $23,600 $25,880 $25,880 The adjusting entries made are:
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.
Fill in the blaknks:
A debit entry of 150 to .................. blank........... and a credit entry to .........blank...............
A debit entry of ................. blank.......... to ................. blank.......... and a credit entry to suppl
The
A ................. blank..........entry of 400 to ................. blank.......... and a ................. blank.......... entry of 400 to b................. blank..........
The closing entries would involve a debit entry of ................. blank.......... to service revenue and a debit entry of 3600 to ................. blank..........
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