The following transactions took place at China Express 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 $3,800 for the current month’s rent.
2. Performed services for $8,000 in cash.
3. Paid salaries of $5,600.
4. Performed additional services for $10,800 on credit.
5. Paid $1,200 for the monthly telephone bill.
6. Collected $4,000 from accounts receivable.
7. Received a $190 refund for an overcharge on the telephone bill.
8. Performed services for $5,200 on credit.
9. Paid $850 in cash for the monthly electric bill.
10. Paid $1,200 in cash for gasoline purchased for the firm’s van during the month.
11. Received $4,200 from charge account customers.
12. Performed services for $8,600 in cash.
Analyze: What total cash was collected for Accounts Receivable during the month?
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