Question

Firm has a net sales of $827,500, beginning accounts receivable of $91,400, ending accounts receivable of $86,150. How many days of sales are in receivables at year-end?

Answer 1

Answer:

Answer:

1) Sale of personal asset is always considered as additional capital. So the journal entry will be -

Bank A/C Dr. _____

To Capital A/C ______

2. When the cheque received is not deposited in bank the same day and is deposited on some other date, it's always considered as Cheque in hand.

So journal entry will be -

Bank A/C Dr. _____

To cheque in hand A/C ____