The following transactions took place at Quick Perfection Laundry and Cleaners. INSTRUCTIONS Analyze each of the transactions.

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The following transactions took place at Quick Perfection Laundry and Cleaners.

INSTRUCTIONS
Analyze each of the transactions. For each transaction, decide what accounts are affected and set up T accounts. Record the effects of the transaction in the T accounts. Use plus and minus signs before the amounts to show the increases and decreases.
TRANSACTIONS
1. Paid $7,500 for the current month’s rent.
2. Performed services for $9,000 in cash.
3. Paid salaries of $6,800.
4. Performed additional services for $12,200 on credit.
5. Paid $1,580 for the monthly telephone bill.
6. Collected $8,000 from accounts receivable.
7.
Received a $380 refund for an overcharge on the telephone bill.
8. Performed services for $8,560 on credit.
9. Paid $950 in cash for the monthly electric bill.
10. Paid $1,590 in cash for gasoline purchased for the firm’s van during the month.
11. Received $6,250 from charge account customers.
12. Performed services for $9,400 in cash.
Analyze: What total cash was collected for Accounts Receivable during the month?

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...
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Related Book For  book-img-for-question

College Accounting A Contemporary Approach

ISBN: 978-0077639730

3rd edition

Authors: David Haddock, John Price, Michael Farina

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