Boilermaker House Painting Company incurs the following transactions for September.1. September 3 Paint houses in the current month for $20,000 on account.2. September 8 Purchase painting equipment for $21,000 cash.3. September 12 Purchase office supplies on account for $3,500.4. September 15 Pay employee salaries of $4,200 for the current month.5. September 19 Purchase advertising to appear in the current month for $1,000 cash.6. September 22 Pay office rent of $5,400 for the current month.7. September 26 Receive $15,000 from customers in (1) above.8. September 30 Receive cash of $6,000 in advance from a customer who plans to have his house painted in the following month.Required:1. Record each transaction. Boilermaker uses the following accounts: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Deferred Revenue, Common Stock, Retained Earnings, Service Revenue, Salaries Expense, Advertising Expense, and Rent Expense.2. Post each transaction to T-accounts and compute the ending balance of each account. At the beginning of September, the company had the following account balances: Cash, $46,100; Accounts Receivable, $1,700; Supplies, $500; Equipment, $7,400; Accounts Payable, $1,200; Common Stock, $25,000; Retained Earnings, $29,500. All other accounts had a beginning balance of zero.3. After calculating the ending balance of each account, prepare a trial balance.
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.
Boilermaker House Painting Company incurs the following transactions for September.
1. September 3 Paint houses in the current month for $20,000 on account.
2. September 8 Purchase painting equipment for $21,000 cash.
3. September 12 Purchase office supplies on account for $3,500.
4. September 15 Pay employee salaries of $4,200 for the current month.
5. September 19 Purchase advertising to appear in the current month for $1,000 cash.
6. September 22 Pay office rent of $5,400 for the current month.
7. September 26 Receive $15,000 from customers in (1) above.
8. September 30 Receive cash of $6,000 in advance from a customer who plans to have his house painted in the following month.
Required:
1. Record each transaction. Boilermaker uses the following accounts: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Deferred Revenue, Common Stock,
2.
3. After calculating the ending balance of each account, prepare a
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