The adjusted trial balance columns of the worksheet for Wildhorse Company are as follows. The owner did not make any additional investments in the business in April. WILDHORSE COMPANY Worksheet (partial) For the Month Ended April 30, 2020 Adjusted Trial Balance Account Titles Dr. Cr. Cash 11,300 Accounts Receivable 7,700 Prepaid Rent 2,400 Equipment 23,100 Accumulated Depreciation—Equip. 5,400 Notes Payable 5,900 Accounts Payable 4,600 Owner’s Capital 28,460 Owner’s Drawings 3,700 Service Revenue 15,800 Salaries and Wages Expense 10,600 Rent Expense 700 Depreciation Expense 660 Interest Expense 60 Interest Payable 60 Totals 60,220 60,220 Prepare a classified balance sheet.
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.
The adjusted
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WILDHORSE COMPANY
Worksheet (partial) For the Month Ended April 30, 2020 |
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Adjusted Trial Balance
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Account Titles
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Dr.
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Cr.
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| Cash | 11,300 | |||
| Accounts Receivable | 7,700 | |||
| Prepaid Rent | 2,400 | |||
| Equipment | 23,100 | |||
| 5,400 | ||||
| Notes Payable | 5,900 | |||
| Accounts Payable | 4,600 | |||
| Owner’s Capital | 28,460 | |||
| Owner’s Drawings | 3,700 | |||
| Service Revenue | 15,800 | |||
| Salaries and Wages Expense | 10,600 | |||
| Rent Expense | 700 | |||
| Depreciation Expense | 660 | |||
| Interest Expense | 60 | |||
| Interest Payable | 60 | |||
| Totals | 60,220 | 60,220 |
Prepare a classified
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