Question The trial balance of Customer Choice Wholesale Company contained the accounts shown at December 31, the end of the company’s fiscal year. Debit Credit Adjustment data: Other data: $39,750 of the notes payable are payable next year. Journalize the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. 2. 3. CUSTOMER CHOICE WHOLESALE COMPANY Trial Balance December 31, 2014 Debit Credit Cash $ 83,210 Accounts Receivable 99,640 Inventory 185,500 Land 243,800 Buildings 530,000 Accumulated Depreciation—Buildings $ 159,000 Equipment 221,275 Accumulated Depreciation—Equipment 107,325 Notes Payable 144,955 Accounts Payable 46,375 Common Stock 424,000 Retained Earnings 178,080 Dividends 26,500 Sales Revenue 2,443,565 Sales Discounts 15,900 Cost of Goods Sold 1,881,235 Salaries and Wages Expense 135,945 Utilities Expense 30,210 Maintenance and Repairs Expense 23,585 Advertising Expense 13,780 Insurance Expense 12,720 $3,503,300 $3,503,300
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.
Question
The trial balance of Customer Choice Wholesale Company contained the accounts shown at December 31, the end of the company’s fiscal year.
Debit
Credit
Adjustment data:
Other data: $39,750 of the notes payable are payable next year.
Journalize the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No.
Account Titles and Explanation
Debit
Credit
1.
2.
3.
|
CUSTOMER CHOICE WHOLESALE COMPANY Trial Balance December 31, 2014 |
||||
|
|
|
Debit |
|
Credit |
|
Cash |
|
$ 83,210 |
|
|
|
Accounts Receivable |
|
99,640 |
|
|
|
Inventory |
|
185,500 |
|
|
|
Land |
|
243,800 |
|
|
|
Buildings |
|
530,000 |
|
|
|
Accumulated Depreciation—Buildings |
|
|
|
$ 159,000 |
|
Equipment |
|
221,275 |
|
|
|
Accumulated Depreciation—Equipment |
|
|
|
107,325 |
|
Notes Payable |
|
|
|
144,955 |
|
Accounts Payable |
|
|
|
46,375 |
|
Common Stock |
|
|
|
424,000 |
|
Retained Earnings |
|
|
|
178,080 |
|
Dividends |
|
26,500 |
|
|
|
Sales Revenue |
|
|
|
2,443,565 |
|
Sales Discounts |
|
15,900 |
|
|
|
Cost of Goods Sold |
|
1,881,235 |
|
|
|
Salaries and Wages Expense |
|
135,945 |
|
|
|
Utilities Expense |
|
30,210 |
|
|
|
Maintenance and Repairs Expense |
|
23,585 |
|
|
|
Advertising Expense |
|
13,780 |
|
|
|
Insurance Expense |
|
12,720 |
|
|
|
|
|
$3,503,300 |
|
$3,503,300 |
Given:
|
CUSTOMER CHOICE WHOLESALE COMPANY |
||||
|
Debit |
Credit |
|||
|
Cash |
$ 83,210 |
|||
|
Accounts Receivable |
99,640 |
|||
|
Inventory |
185,500 |
|||
|
Land |
243,800 |
|||
|
Buildings |
530,000 |
|||
|
Accumulated Depreciation—Buildings |
$ 159,000 |
|||
|
Equipment |
221,275 |
|||
|
Accumulated Depreciation—Equipment |
107,325 |
|||
|
Notes Payable |
144,955 |
|||
|
Accounts Payable |
46,375 |
|||
|
Common Stock |
424,000 |
|||
|
Retained Earnings |
178,080 |
|||
|
Dividends |
26,500 |
|||
|
Sales Revenue |
2,443,565 |
|||
|
Sales Discounts |
15,900 |
|||
|
Cost of Goods Sold |
1,881,235 |
|||
|
Salaries and Wages Expense |
135,945 |
|||
|
Utility Expense |
30,210 |
|||
|
Maintenance and Repairs Expense |
23,585 |
|||
|
Advertising Expense |
13,780 |
|||
|
Insurance Expense |
12,720 |
|||
|
$3,503,300 |
$3,503,300 |
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Concept:
The financial statement which contains the summary of all the financial balance data of an individual or an entity is called a balance sheet.
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