Journal entry worksheet 1 4 7 8. 9. 13 ..... Record the adjusting entry for supplies on December 31. Note: Enter debits before credits. Date Account Title Debit Credit Dec 31
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.
Office supplies means the any product used in office on regular basis. We do have office supplies at the beginning and at the end of specified period.
We can not say that amount of office supplies purchased during the period is our expenses because we need to consider the opening and closing inventory also.
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