Sunday, 10 December 2017

I have a transaction entry that states "Customers paid $25,000 in advance payments for goods that will be delivered later."Which account will the...

In order
to properly account for all the funds and transactions made during a prepaid transaction, you
have to account for credits and debits after both the first payment and the subsequent delivery
of the goods.

First and foremost, you would write down the debit (or funds
received) towards the cash account for a total of $25,000. Next, there is a credit in the column
for inventory deliverables for the same amount. This accounts for the payment made and the fact
that you have yet to deliver the product.

After the delivery, you register a
debit of $25,000 towards Inventory deliverables to zero...

No comments:

Post a Comment

In 1984, is Julia a spy? Please provide specific examples from the book. My teacher says that he knows of 17 pieces of evidence which proves that Julia...

There is some evidence to suggest thatwas a spy throughout 's classic novel . Julia portrays herself as a loyal admirer of Big ...