Date Account title $ May5 Dr.________ ___ Cr.______ ___ Date Account title $ May 8 Dr.________ ___ Cr.______ ___ Date Account title $ May12 Dr.________ ___ Cr.______ ___ Date Account title $ May13 Dr.________ ___ Dr.______ ___ Cr._____ ___ Date Account title $ May17 Dr.________ ___ Cr.______ ___ Date Account title $ May20 Dr.________ ___ Cr.______ ___ (b) The balance of Accounts Receivable on may 31 is: $____ Dr
Date Account title $ May5 Dr.________ ___ Cr.______ ___ Date Account title $ May 8 Dr.________ ___ Cr.______ ___ Date Account title $ May12 Dr.________ ___ Cr.______ ___ Date Account title $ May13 Dr.________ ___ Dr.______ ___ Cr._____ ___ Date Account title $ May17 Dr.________ ___ Cr.______ ___ Date Account title $ May20 Dr.________ ___ Cr.______ ___ (b) The balance of Accounts Receivable on may 31 is: $____ Dr
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter9: Sales And Purchases
Section: Chapter Questions
Problem 8E: Toby Company had the following sales transactions for March: Mar. 6Sold merchandise on account to...
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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.
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Delta Company sells goods and performs services for its customers. On May 1, 2021 "Accounts Receivable " had a debit balance of $150. During the month of May the following transactions occurred.
Date Transaction description
May 5 Sold goods to customer A on credit for $400, 2/10, n/30
May 8 Performed services for customer B for $200 cash
May 12 Customer A returned goods with a sales price for $100
May13 Received payment from customer A for the balance due
May 17 Performed services for customer C and billed the customer $100
May20 Received a partial payment of $80 from customer C
Required:
(a) Prepare the journal entries for the above transactions (Ignore COGS)
(b) What is the balance of Accounts Receivable on May 31
Solution
(a)
Date Account title $
May5 Dr.________ ___
Cr.______ ___
Date Account title $
May 8 Dr.________ ___
Cr.______ ___
Date Account title $
May12 Dr.________ ___
Cr.______ ___
Date Account title $
May13 Dr.________ ___
Dr.______ ___
Cr._____ ___
Date Account title $
May17 Dr.________ ___
Cr.______ ___
Date Account title $
May20 Dr.________ ___
Cr.______ ___
(b)
The balance of Accounts Receivable on may 31 is:
$____ Dr or Cr?
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