Wolford Department Store is located in midtown Metropolis. During the past several years, net income has been declining because suburban shopping centers have been attracting business away from city areas. At the end of the company’s fiscal year on November 30, 2017, these accounts appeared in its adjusted trial balance. Accounts Payable $ 34,304 Accounts Receivable 22,016 Accumulated Depreciation—Equipment 87,040 Cash 10,240 Common Stock 44,800 Cost of Goods Sold 786,304 Freight-Out 7,936 Equipment 200,960 Depreciation Expense 17,280 Dividends 15,360 Gain on Disposal of Plant Assets 2,560 Income Tax Expense 12,800 Insurance Expense 11,520 Interest Expense 6,400 Inventory 33,536 Notes Payable 55,680 Prepaid Insurance 7,680 Advertising Expense 42,880 Rent Expense 43,520 Retained Earnings 18,176 Salaries and Wages Expense 149,760 Sales Revenue 1,157,120 Salaries and Wages Payable 7,680 Sales Returns and Allowances 25,600 Utilities Expense 13,568 Additional data: Notes payable are due in 2021.
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.
Wolford Department Store is located in midtown Metropolis. During the past several years, net income has been declining because suburban shopping centers have been attracting business away from city areas. At the end of the company’s fiscal year on November 30, 2017, these accounts appeared in its adjusted
| Accounts Payable | $ 34,304 | |
| Accounts Receivable | 22,016 | |
| 87,040 | ||
| Cash | 10,240 | |
| Common Stock | 44,800 | |
| Cost of Goods Sold | 786,304 | |
| Freight-Out | 7,936 | |
| Equipment | 200,960 | |
| Depreciation Expense | 17,280 | |
| Dividends | 15,360 | |
| Gain on Disposal of Plant Assets | 2,560 | |
| Income Tax Expense | 12,800 | |
| Insurance Expense | 11,520 | |
| Interest Expense | 6,400 | |
| Inventory | 33,536 | |
| Notes Payable | 55,680 | |
| Prepaid Insurance | 7,680 | |
| Advertising Expense | 42,880 | |
| Rent Expense | 43,520 | |
| 18,176 | ||
| Salaries and Wages Expense | 149,760 | |
| Sales Revenue | 1,157,120 | |
| Salaries and Wages Payable | 7,680 | |
| Sales Returns and Allowances | 25,600 | |
| Utilities Expense | 13,568 |
Additional data: Notes payable are due in 2021.
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