Cash Accounts Receivables Allowance for Bad Debts Office Supplies Prepaid Insurance Merchandise Inventory, June 1, 2012 Office Equipment Accumulated Depreciation- Office Equipment Store Equipment Accumulated Depreciation- Store Equipment Accounts Payable Salaries Payable Note Payable (final payment due 2025) Rayne Sison, Capital, June 1, 2012 Rayne Sison, Drawing Sales Sales Discounts Sales Returns and Allowances Purchases Purchase Discounts Purchase Returns and Allowances 757,500 Interest Income 396,000 Equipment Gain from Sale of Office 33,000 Advertising Expense 16,800 10,200 Store Eant Freight-In 138,400 Depreciation Expense- Office Ean't 525,000 255,000 Freight-Out Depreciation Expense- 168,000 1,307,500 Insurance Expense Miscellaneous Administrative Expense Miscellaneous Selling 759,000 102,600 Expense Office Equipment Repair 166,800 Expense 7,200 Office Salaries Expense Office Supplies Expense Rent Expense 105,000 Sales Salaries Expense 3,850,000 Store Equipment Repair Expense 65,700 Taxes Expense 69,300 2,400,000 38,000 28,000 Utilities Expense (Office Spaces) Utilities Expense (Selling Area) Interest Expense Loss from Sale of Store Equipment 3,000 8,000 110,400 33,000 17,000 70,000 21,000 11,700 5,500 15,000 5,000 14,000 10,200 50,000 70,000 2,200 10,000 10,000 8,000 8,000 15,000 The following selected accounts and their current balances appear in the ledger of Rayne Supplies Company, which sells irrigation supplies primarily to wholesalers and occasionally to retail customers at the end of the fiscal year May 31, 2013.
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.
Prepare a multiple-step income statement. Its inventory at the END OF THE YEAR was P440,000
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