In August, the account receivable balance of Johns Co. reached $10,000 and was written off using a direct method. However, the company paid off the remaining balance in full in November. The company must enter a journal entry to reinstate the account, including a credit to the _________________ account before recording a debit to the Cash account. How will this information be used?
To determine the account receivable balance, a business must analyze the financial statements of all its branches. In August, the company had $400,000 in capital stock and paid $3,000 in rent in August. The company also received a payment of $2,000 in laundry services and a secured order of $7,000 from a customer for the same. In addition, it collected a total of $ 6,300 on its account for various customers.
As of August 31, 2015, Quick-Fix TV Repair Company had $400,000 in capital stock. The company spent $3,000 on rent and completed $1,500 worth of laundry services. During the month of August, the company received $ 430 in supplies and collected $ 2,600 from customers. The total amount in the cash account was $16,300. The company’s account receivable balance was zero for the entire month of August.
In August, the company issued capital stock for $20,000 in cash. They borrowed $40,000 from the bank on a note. They purchased cleaning equipment for $ 25,000 in cash. They performed services for customers who promised to pay later. They also paid rent on their building for the month of August and collected a $400 utility bill. The total amount of cash paid out by the company for services performed by the company was $1,600.
On December 31, August 1 issued capital stock for cash. It also borrowed $40,000 from the bank on a note. It also purchased cleaning equipment and paid rent on the building. Finally, it collected $ 2,600 from customers. Its account receivable balance was $192,000 at the end of the month. This demonstrates the fact that the company is able to issue capital stock for cash.
As of December 31, the company had $400,000 in capital stock. Its monthly expenses included $3,000 in rent. In August, it performed laundry services for customers. The semiannual dividend was posted to the Capital Stock account. In addition, the company received a total of $6,000 in sales. Its expenses included a credit for the Advertising Expense account. The other expense accounts were omitted, but they still had a balance of $3,800.
As of December 31, the company had $400,000 in capital stock. It performed $2,600 in laundry services. It received a check for $2,000 from a customer. It received $ 430 in supplies, and collected $ 2,600 from customers. The balance of the Accounts Payable account was $146 at the end of August. The bank credited the check. The company had a total of $53,600 in accounts receivable and paid out $3,400 in rent.
In August, the company had a capital stock of $400,000. It paid $3,000 in rent for the month of August. It performed $2,400 in laundry services. It received $ 1,400 in August as well. The company also collected $ 2,600 from customers. Its account receivable balance was $73,300 on December 31. The total cash on hand was $146,200.
The company recorded a credit of $3,000 on the accounts payable account on December 31. Its capital stock was $42,000 at the end of August. The company had $4,000 in capital stock on December 31. It had made a $7,000 order for laundry services. It collected $ 6,000 from various customers during the month of August. Its cash on hand was $7,300. However, the company had incurred a total of $7,000 in expenses for supplies.
In August johns co s account receivitable balance, the company collected R$138,000 in sales in the month. It has an annual bad debt rate of approximately one and a half percent of its total sales. As a result, it has a high bad debt ratio of approximately 11.5 percent. The company’s Accounts Receivable balance should be adjusted annually to reflect the actual sales volume.