Question

The ledger of Windsor Company at the end of the current year shows Accounts Receivable $149,000, Sales Revenue $853,000, and Sales Returns and Allowances $23,000. Journalize the following independent situations.

Answer 1

The sales revenue will be recorded in the comprehensive Income after net of sales return.

The account receivables shows the credit sales made and the amount not recovered till yet from the customers.

Hence sales will come at top of profit and loss.

Sales return will come in noted to the financial statements in sales note.

And account receivables will be shown in balance sheet as current asset.