Solution-Shows a credit balance for accounts receivable

Shows a credit balance for accounts receivable

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Reference no: EM132875066

Problem - Transactions and T accounts - The following selected transactions were completed during August of the current year:

1. Billed customers for fees earned, $35,700.

2. Purchased supplies on account, $2,000.

3. Received cash from customers on account, $26,150.

4. Paid creditors on account, $800.

Required -

a. Journalize the above transactions in a two-column journal, using the appropriate number to identify the transactions. Journal entry explanations may be omitted.

b. Post the entries prepared in (a) to the following T accounts: Cash, Supplies, Accounts Receivable, Accounts Payable, Fees Earned. To the left of each amount posted in the accounts, place the appropriate number to identify the transactions.

c. Assume that the unadjusted trial balance on August 31 shows a credit balance for Accounts Receivable. Does this credit balance mean an error has occurred?

Reference no: EM132875066

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Shows a credit balance for accounts receivable

Reference no: EM132875066

Reference no: EM132875066

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