trade receivables and trade payables

Question 1

define trade receivables

Answer 1

refers to the amounts owed by customers who buys goods and services on credit from the business

Question 2

define trade payables

Answer 2

refers to the amounts owed to suppliers when a business buys goods and non-current assets on credit.

Question 3

journal entries for provide services on credit to customer

Answer 3

dr TR
cr service fee revenue

Question 4

journal entries for sold goods on credit to customer

Answer 4

dr TR
cr sales revenue

dr cost of sales
cr inventory

Question 5

journal entries for credit customers returned goods to business

Answer 5

dr sales returns
cr TR

dr inventory
cr cost of sales

Question 6

journal entries for received $ from customers with no discount

Answer 6

dr c.a.b
cr TR

Question 7

journal entries for received $ from customers with discount allowed

Answer 7

dr c.a.b/cash in hand
dr discount allowed
cr TR

Question 8

journal entries for dishonoured cheque from customers with discount allowed

Answer 8

dr TR
cr cash at bank
cr discount allowed

Question 9

journal entries for purchased goods/NCA on credit from supplier

Answer 9

dr inventory/NCA
cr TP

Question 10

journal entries for returned damaged goods to supplier

Answer 10

dr TP
cr inventory

Question 11

journal entries for payment to credit suppliers with no discount

Answer 11

dr TP
cr cash at bank/cash in hand

Question 12

journal entries for payment to credit supplier with discount received

Answer 12

dr TP
cr cash at bank/cash in hand
cr discount received