A company uses the following pairs of accounts for its financial statements: Sales and Accounts receivable

Question:

A company uses the following pairs of accounts for its financial statements:
• Sales and Interest payable and Interest expense
• Supplies expense and Supplies
• Inventory and Cost of sales
• Salaries payable and Salaries expense
• Income tax expense and Income tax payable
Required:
For each pair of accounts, identify which account would be reported on the and which would be reported on the income statement. For each account, identify its classification. For each income statement account, identify which subtotal(s) of income would be affected by the account. Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...