Month-end adjusting entries: Of the remaining accounts receivable, the company estimates that 10% will not be collected. Accrued interest revenue on notes receivable for January. Accrued interest expense on notes payable for January. Accrued income taxes at the end of January for $5,000. Depreciation on the building, $2,000. Please Fill out the following journal entrys: 1. Of the remaining accounts receivable, the company estimates that 10% will not be collected. Record the adjusting entry for bad debts 2. Record the closing entry for temporary credit accounts 3. Record the closing entry for temporary debit accounts
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.
Month-end
- Of the remaining
accounts receivable , the company estimates that 10% will not be collected. - Accrued interest revenue on notes receivable for January.
- Accrued interest expense on notes payable for January.
- Accrued income taxes at the end of January for $5,000.
Depreciation on the building, $2,000.
Please Fill out the following
1. Of the remaining accounts receivable, the company estimates that 10% will not be collected. Record the adjusting entry for
2. Record the closing entry for temporary credit accounts
3. Record the closing entry for temporary debit accounts
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