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The Effects Of Sales Returns And Sales Allowances On Accounts Receivable (Sundry Debtors) A debit to Sales Returns And Allowances and a credit to Accounts Receivable (Sundry Debtors) shows either the customers returned the goods / merchandise or received an allowance on merchandise sold to them by the corporation / company during the accounting period. The entry to record is shown below:                                              Sales Returns And Allowances a/c  XXX                                                                                                             Accounts Receiv...

Answer And Explanation Of MCQ With Journal Entry An Adjusting Entry recorded to estimate future customer behavior includes Customer Returns Or Sales Returns , as the customer returns show how much the customer is satisfied with the goods or services sold to them by the corporation. The adjusting entry to record is shown below:                                                        Sales Returns a/c  XXX                                                                                            Accounts Receivable a/c  XXX                       ...

Unbilled fees earned is a Revenue which is earned by the corporation or company by rendering services to clients but the bill is not invoiced to them. The journal entry to record is shown below:                            Unbilled Fees Receivable a/c  XXX                                                                                  Fees Earned a/c  XXX                                                  (Fees Earned But Invoice Not Issued To Clients) Here, Unbilled fees receivable is a current asset and shown on balance sheet on asset side while Fees Earned is a revenue...

Sales Account The first closing entry for a retail business or a merchandising business will include “Sales” as in the Closing Entry Process , the first closing entry includes all of the Revenue Accounts which are closed to Income Summary Account ,  so revenue accounts have no balances at the end of the accounting period. To close sales account into income summary account, the following Sales Revenue Closing Entry is recorded as shown below:                                                                   Sales a/c  XXX                                                                                   ...

After The Second Closing Entry Is Posted Income Summary Is Equal To What? After Posting The Second Closing Entry To The Income Summary Account , The Balance Will Be Equal To Net Income or Net Loss for the period, otherwise, income summary account is not calculated accurately and correctly and there are errors and mistakes in the calculation. The first entry closes all of the Revenue Accounts to income summary account and the second entry closes all of the Expense Accounts to income summary account and the difference between revenue accounts and expense accounts or the difference of credit side and debit side of income summary account shows either Net Income Or Net Loss for the period. First Closing Entry (To Close Revenue Accounts)                                                   Revenue Accounts a/c  XXX           ...

The journal entry to record for admission fees received in cash for Rs. 25000 resulted in the debit to Cash Account and the credit to Admission Fees Received Account or Service Revenue Account as shown below:                                                                     Cash a/c  25000                                                                                         Service Revenue a/c  25000                                                     ...

Retained Earnings Normally Has An Account Balance That / A Debit And Credit Balance In Retained Earnings Is Called What? Accordi ng to the Rules of Deb it A nd Credit , when Retained Earnings increases, we credit it and when it decreases, then we debit it. The N ormal B alance or usual balance for retained earnings account is Credit and it is a favourable balance or positive balance for these. It shows accumulated Profit. If there is a debit balance, then we called it a accumulated loss or deficit that is unfavourable or negative balance for retained earnings account or earnings surplus account. Retained Earnings Is Also Known As What? It is also called earnings surplus. So, we ca n say that  a credit  balance in retained earnings is called accumulated profit while a  debit balance in it is called accumulated deficit or loss.