Refer to the information in BE4-7 for Hébert Company. Prepare the correcting journal entries. Information in BE4-7 1. A collection
Information in BE4-7
1. A collection of cash on account from a customer for $750 was recorded as a debit to Cash of $750 and a credit to Service Revenue of $750.
2. An invoice to a customer for $600 of services on account was recorded as a $600 debit to Accounts Receivable and a $600 credit to Unearned Revenue.
3. A $500 cash payment to the owner, Roch Hébert, was recorded as a debit to Salary Expense of $500 and a credit to Cash of $500.
4. The payment of cash to a creditor of $280 was recorded as a $280 credit to Accounts Payable and a $280 debit to Cash.
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Chapter # 4
Section: Brief Exercises
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Question Posted: March 15, 2017 11:08:16