Accounting Tools

JULY 18, 2023

When goods or services are sold on credit, debit accounts receivable and credit sales. If a sale is for cash, then the debit is to the cash account instead of the accounts receivable account. Allowance for doubtful accounts entry. Example Expense Journal Entries Accounts payable entry.

Petty cash 75

Petty cash Accounts Payable Accounts Payable Payroll 75

Accounting Tools

APRIL 16, 2023

Doing this periodically keeps the number of accounts down to a manageable level.

Petty cash 40

Petty cash General Ledger Accounting Accounting 40

Accounting Tools

OCTOBER 3, 2023

When a company increases in size and wants to track information for individual subsidiaries or departments, it should instead adopt a 5-digit or 7-digit chart of accounts.

Petty cash 40

Petty cash Computation Accounting Accounting 40

Accounting Tools

OCTOBER 3, 2023

The following sample chart of accounts uses divisions located in Boston and Omaha to demonstrate how a seven-digit chart of accounts could be structured. Account No.

Petty cash 40

Petty cash Computation Accounting Accounting 40

Accounting Tools

OCTOBER 3, 2023

A sample of the five digit chart of accounts format follows, using the accounting and production departments to show how expense account codes can be duplicated.

Petty cash 40

Petty cash Accounting Accounting Computation 40