Be sure to check your understanding of this journal entry and lesson by taking the quiz in theTest Yourself! sectionfurther below. And right at the bottom of the page, you can find more questions on the topic submitted by fellow students. ...
If you're feeling good about double entries, feel free to move on to our next lesson, where we'll go over an example of income where we don't receive the cash straight away (i.e. a credit transaction).Click here for our accrued income journal entry tutorial. Stay up to date with A...
This example uses headcount to illustrate how a company can record statistical information in a journal entry. The posted statistical balances can then be used in journal entries that allocate expenses. Scenario InFusion America Incorporated hires thirty new employees and assigns them to the sales, a...
Required:Make a journal entry in the books of Y Merchants that records: The purchase of merchandise from Z Traders The returns outward The receipt of refund of cash for goods returned to Z Traders Solution Return of Merchandise Purchased on Account ...
Journal Entry Example 3 September 2011 1. This week I read the novel, Alice’s Tulips by Sandra Dallas. It was an interesting novel written in the epistolary form of letters from Alice to her sister Lizzie. The setting was during the American Civil War in a small town in Iowa. Sandra ...
These are recorded in the period of time in which they are incurred. However, this may differ from the period of time in which they are actually paid off. Accounting For an Accrued Liability To account for an accrued liability, you have to make a journal entry. When doing the accounts, ...
Journal Entry Example 3 September 2011 1.This week I read the novel, Alice’s Tulips by Sandra Dallas. It was an interesting novel written in the epistolary form of letters from Alice to her sister Lizzie. The setting was during the American Civil War in a small town in Iowa. Sandra ...
For example, on October 28, 2020, the company ABC Ltd. receives a discount of 2% on the $3,000 amount due when it makes a cash payment to its supplier on the last day of the discount period. The same as the perpetual inventory system, there is a journal entry needed under the gross...
An adjusting journal entry occurs at the end of a reporting period to record any unrecognized income or expenses for the period.
The other method for writing off inventory is known as the allowance method. It may be more appropriate when inventory can be reasonably estimated to have lost value but the inventory hasn't yet been disposed of. A business will record a journal entry with a credit to a contra asset account...