Normal balance/entry

Asset Debit
Liability Credit
Capital Credit
Revenue Credit
Expense Debit

Sales, AR, Bad debts

Jan 1. Book sales amounting to 100,000 - not yet collected. Provided discount of 5,0
Jan 2. From the january 1 sales, there was a sales return of 10,000
Jan 5. Sale from January 1 was 100% collected.
Jan 10. Book another sales amounting to 50,000
Jan. 30 Assessed that the 10% of sales recorded on Jan. 10 is uncollectible.
Feb. 1 Collected the remaining amount on Jan 10.

Jan-01 Dr Cr
Accounts receivable 100,000.00
Sales 100,000.00
To record sales

Jan-01 Sales discount 5,000.00

Accounts receivable 5000

Jan-02 Sales return 10,000.00

Accounts receivable 10000

Jan-05 Cash 85,000.00

Accounts receivable 85,000.00

Jan-10 Accounts receivable 50,000.00

Sales 50,000.00

Jan-30 Bad debt expense 5,000.00

Allowance for bad debts 5,000.00

Feb-01 Cash 45,000.00

Accounts receivable 45,000.00

Trial balance: Debit Credit

Cash 130,000.00 -
Accounts receivable 150,000.00 145,000.00
Allowance for bad debts - 5,000.00
Sales - 150,000.00
Sales return 10,000.00 -
Sales discount 5,000.00 -
Bad debt expense 5,000.00 -
et collected. Provided discount of 5,000.
es return of 10,000

on Jan. 10 is uncollectible.

Increase in AR
Increase in Sales

Increase in sales discount - deduction to total sales

Decrease in AR - kasi nagbigay ka ng discount

Increase in sales return - deduction to total sales

Decrease in AR - kasi nagsauli/nagreturn ng goods sold

collection of sales - increase in cash

decrease in AR due to collection

Increase in AR
Increase in Sales

Increase in expense (Income statement)

Decrease in AR/Contra Asset Account (Balance sheet)

Trial balance:
Net Debit Credit
130,000.00 Cash 130,000.00
5,000.00 Accounts receivable 5,000.00
- 5,000.00 Allowance for bad debts 5,000.00
- 150,000.00 Sales 150,000.00
10,000.00 Sales return 10,000.00
5,000.00 Sales discount 5,000.00
5,000.00 Bad debt expense 5,000.00

Balance sheet

Cash 130,000.00
AR -
Total assets 130,000.00

Liability -
Capital -
Net income 130,000.00
Total liability and capital 130,000.00

Income statement
Sales 150,000.00
Sales discount - 10,000.00
Sales return - 5,000.00
Net sales 135,000.00

Cost of goods sold -

Gross profit 135,000.00

Less:
Bad debt expense - 5,000.00
Net income 130,000.00
 Normal balance/entry
Asset Debit
Liability Credit
Capital Credit
Revenue Credit
Expense Debit

Purchase, AP and Disbursement

Jan 1. Purchase equipment amounting to 500,000 on accoun
Jan 2. Paid the equipment purchase on January 1
Jan 5. Paid salaries amounting to 50,000
Jan 10. Paid professional fees amounting to 60,000
Jan. 30 Received electricity billing amounting to 10,000 - not y
Jan. 30 Equipment's useful life is 5 years and is being deprecia

Dr Cr
Jan-01 Equipment 500,000.00
Accounts payable 500,000.00

Jan-02 Accounts payable 500,000.00

Cash 500,000.00

Jan-05 Salaries expense 50,000.00

Cash 50,000.00

Jan-10 Professional fees 60,000.00

Cash 60,000.00

Jan-30 Utilities expense 10,000.00

Accounts payable 10,000.00

Jan-30 Depreciation expense 8,333.33

Accumulated depreciation 8,333.33

Equipment 500,000.00
Divided by useful life in months 60
Monthly depreciation 8,333.33
ng to 500,000 on account (not yet paid)
on January 1

ting to 60,000
ounting to 10,000 - not yet paid.
rs and is being depreciated using straight-line basis

Purchase of equipment
Increase in AP (di ka pa kasi bayad)

Decrease due to payment

Decrease due to payment

Increase due to salaries expense

Decrease due to payment of salary

Increase due to professional fees

Decrease due to payment of professional fees

Increase due to billing for the month

Increase in AP (di ka pa kasi bayad)

to record depreciation expense

to record depreciation expense