Jounalize all entries required for First Place Running Shoes. ( Record debits first, then credits. Select the Explanation on the last line of the journal entry table.) May 3, 2018: Recorded credit sales of 100,000. Ignore Cost of Goods Sold. Oct 1, 2018: Loaned $18,000 to Tess Philip, an executive with the company, on a one-year 7% note. Dec 31, 2018: Accrued interest revenue on the Phillip note. Oct 1, 2019: Collected the maturity value of the Phillip note. (Prepare a single compound journal entry.)
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.
Jounalize all entries required for First Place Running Shoes. ( Record debits first, then credits. Select the Explanation on the last line of the
May 3, 2018: Recorded credit sales of 100,000. Ignore Cost of Goods Sold.
Oct 1, 2018: Loaned $18,000 to Tess Philip, an executive with the company, on a one-year 7% note.
Dec 31, 2018: Accrued interest revenue on the Phillip note.
Oct 1, 2019: Collected the maturity value of the Phillip note. (Prepare a single compound journal entry.)
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