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If the amount of uncollectible account expense is understated at year end?
net Accounts Receivable will be overstated.
Who of the following accounts would be closed at the end of the accounting period?
Accounts receivable
ABC Company has an average collection period of 60 days Total credit sales for the year were 3000000 What is the balance in accounts receivable at year-end?
$500,000
Why is there a need to close of the temporary accounts at the end of the year?
for how thhe covid-19
What account would not be closed to income summary at the end of the fiscal year?
At the end of the fiscal year, permanent accounts, also known as real accounts, are not closed to the Income Summary. These accounts include assets, liabilities, and equity accounts, such as cash, accounts receivable, accounts payable, and retained earnings. Instead, they carry their balances forward into the next accounting period. In contrast, temporary accounts like revenues and expenses are closed to the Income Summary to prepare for the new fiscal year.
When the sales journal's column for accounts receivable and sales is totaled at the end of the month its total is debited where?
At the end of the month, the total of the accounts receivable column from the sales journal is debited to the Accounts Receivable account in the general ledger. Simultaneously, the total of the sales column is credited to the Sales Revenue account. This process ensures that the accounting records reflect the sales made on credit and the corresponding increase in receivables.
When the sales jounal's column for accounts receivable and sales is totaled at the end of the month its total is posted where?
revenue
What are the accounting journal entries to record for sales to customers on credit terms?
Depending on the credit terms, the accounts used may vary slightly but it is a basic entry. If the credit terms are where the account will be paid off in one year or less the accounts are: Account Receivable (debit) Revenue (credit) If the terms end up being more than one year then the only account that changes is the accounts receivable and you use Notes Receivable. Notes Receivable (debit) Revenue (credit) *note, some companies may list revenue as Sales, Sales Revenue, Income, etc. For general purposes Revenue is most commonly used. (GAAP)
Do you close out accounts payable at the end of the year?
In answer to your question: no. Accounts Payable is the total amount you owe to your creditors, therefore it is a liability and should be left on your balance sheet.
What are the accounting entries of rent receivable that is prepared in the next financial year?
Adjusting entries are the accounting entries of rent receivable that are prepared at the end of the financial year. As a result, adjustments are made for the new financial year based on the previous year.
What is the difference between gas sales and Accounts Receviable sale of gas?
Accounts receivable - is fuel bought 'on account'. Those buying with this method are usually required to settle their balance at the end of each month.
What is bad debt expense if The company estimates that of the 40000 in accounts receivable outstanding at year-end 5200 probably will not be collected?
5200 is a bad debt expense as company has estimated that it is possible that company will not be able to receive that amount from debtors.
