Scribd
Upload
44 views2 pages

Accruals

Custodio's Magical Toys rented a booth for a toy convention in December 2014 that cost ₱10,000. An entry was made on December 1 to record rent expense and rent payable. Marco Massages Spa gave massages on accounts to 200 customers in December at ₱1000 each, but 50 customers did not pay, so an entry was made to record an estimated ₱200,000 in bad debt expense and increase the allowance for doubtful accounts.

Uploaded by

marco_pangilinan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
44 views2 pages

Accruals

Custodio's Magical Toys rented a booth for a toy convention in December 2014 that cost ₱10,000. An entry was made on December 1 to record rent expense and rent payable. Marco Massages Spa gave massages on accounts to 200 customers in December at ₱1000 each, but 50 customers did not pay, so an entry was made to record an estimated ₱200,000 in bad debt expense and increase the allowance for doubtful accounts.

Uploaded by

marco_pangilinan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Accruals-Rent Expense

On Dec 1, 2014, Custodios Magical Toys used a booth in a toy convention for the month of
December 2014 that costs 10,000.
OE
Rent Expense

10,000

Rent Payable

10,000

AE
Rent Payable

10,000

Cash

10,000

Accruals for Uncollectibles


On Dec 1, 2014, Marco Massages Spa celebrated its annual Massages on Accounts with a
limit of 200 customers. The cost of each massage is 1000. By the end of the month, 50
customers did not pay for the service rendered.
OE
Bad Debt Expense

200,000

Allowance for Doubtful Accounts

200,000

AE
Allowance for Doubtful Accounts
Accounts Receivable

150,000
150,000

You might also like