33 - What is the record to be made when the company pays a debt that arises from the purchase of goods on credit, by paying a check from a customer by endorsement? A) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT COMMERCIAL GOODS XX SELLERS XX B) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT SELLERS XX CHECKS RECEIVED XX C) THE CODE AND NAME OF THE ACCOUNT WILL BE DEBT COMMERCIAL GOODS XX CHECKS RECEIVED XX D) CODE AND NAME OF THE ACCOUNT WILL BE DEBT SELLERS XX CHECK GIVEN AND PAYMENT ORDERS. XX E) THE CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT CHECK GIVEN
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.
33 - What is the record to be made when the company pays a debt that arises from the purchase of goods on credit, by paying a check from a customer by endorsement?
A) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT
COMMERCIAL GOODS XX
SELLERS XX
B) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT
SELLERS XX
CHECKS RECEIVED XX
C) THE CODE AND NAME OF THE ACCOUNT WILL BE DEBT
COMMERCIAL GOODS XX
CHECKS RECEIVED XX
D) CODE AND NAME OF THE ACCOUNT WILL BE DEBT
SELLERS XX
CHECK GIVEN AND PAYMENT ORDERS. XX
E) THE CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT
CHECK GIVEN
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