Question

Presented below is information for Martinez Company.

1. Beginning-of-the-year Accounts Receivable balance was $24,900.

2. Net sales (all on account) for the year were $105,300. Martinez does not offer cash discounts.

3. Collections on accounts receivable during the year were $84,300.

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

Answer 1

Step-by-step explanation:

To record the beginning-of-the-year Accounts Receivable balance:

Debit: Accounts Receivable $24,900

Credit: Beginning Retained Earnings $24,900

To record the Net Sales:

Debit: Accounts Receivable $105,300

Credit: Sales Revenue $105,300

To record the Collections on Accounts Receivable:

Debit: Cash $84,300

Credit: Accounts Receivable $84,300