Question

Presented below is information for Blue Company. 1.Beginning-of-the-year Accounts Receivable balance was $21,500. 2.Net sales (all on account) for the year were $109,100. Blue does not offer cash discounts. 3.Collections on accounts receivable during the year were $88,900. Partially correct answer iconYour answer is partially correct. Prepare (summary) journal entries to record the items noted above. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. enter an account title Accounts Receivable enter a debit amount 21,500.00 enter a credit amount enter an account title Sales Revenue enter a debit amount enter a credit amount 21,500.00 2. enter an account title Accounts Receivable enter a debit amount 109,100.00 enter a credit amount enter an account title Sales Revenue enter a debit amount enter a credit amount 109,100.00 3. enter an account title Cash enter a debit amount 88,900.00 enter a credit amount enter an account title Accounts Receivable enter a debit amount enter a credit amount 88,900.00

Answer 1

Question

Presented below is information for Blue Company.

1.Beginning-of-the-year Accounts Receivable balance was $21,500

. 2.Net sales (all on account) for the year were $109,100. Blue does not offer cash discounts. 3.Collections on accounts receivable during the year were $88,900.

Prepare (summary) journal entries to record the items noted above.

Answer::

Every time a transaction occurs, it’s recorded using a journal entry.

Journalizing is regarded as the process of recording a business transaction in the accounting records (Journal Book).

It's divided into the credit and debit column.

The journal entries for this transaction is a s follows

Account Receivable : $109,000 (Debit)

Sales; $109,000 (Credit)

Cash : $88,900 (Debit)

Account Receivable : $88,900 (Credit)