[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.84,0:00:04.60,Default,,0000,0000,0000,,So, $3,950, okay?
Dialogue: 0,0:00:04.60,0:00:07.92,Default,,0000,0000,0000,,And then my last transaction,
Dialogue: 0,0:00:07.92,0:00:11.08,Default,,0000,0000,0000,,it is N for Nancy, I guess.
Dialogue: 0,0:00:11.08,0:00:12.68,Default,,0000,0000,0000,,Or Nathan.
Dialogue: 0,0:00:12.68,0:00:17.16,Default,,0000,0000,0000,,Is that on the 31st,\Nwe issue credit memo
Dialogue: 0,0:00:17.16,0:00:21.84,Default,,0000,0000,0000,,for $595 merchandise return\Nfrom March 30th transaction,
Dialogue: 0,0:00:21.84,0:00:23.20,Default,,0000,0000,0000,,the previous day.
Dialogue: 0,0:00:23.20,0:00:26.28,Default,,0000,0000,0000,,The cost of that merchandise was $390.
Dialogue: 0,0:00:26.28,0:00:28.68,Default,,0000,0000,0000,,So, we did a transaction similar to that,
Dialogue: 0,0:00:28.68,0:00:30.12,Default,,0000,0000,0000,,where we had a return.
Dialogue: 0,0:00:30.12,0:00:31.60,Default,,0000,0000,0000,,So, we have an account.
Dialogue: 0,0:00:31.60,0:00:35.96,Default,,0000,0000,0000,,It's going to be called\NSales Return and Allowances.
Dialogue: 0,0:00:35.96,0:00:38.44,Default,,0000,0000,0000,,So, we're going to debit\Nbecause the normal side
Dialogue: 0,0:00:38.44,0:00:41.92,Default,,0000,0000,0000,,for sales return allowances\Nand sales discount,
Dialogue: 0,0:00:41.92,0:00:43.12,Default,,0000,0000,0000,,contra revenue account,
Dialogue: 0,0:00:43.12,0:00:45.00,Default,,0000,0000,0000,,is going to be on the debit side
Dialogue: 0,0:00:45.00,0:00:46.40,Default,,0000,0000,0000,,because revenue,\Nthe normal side,
Dialogue: 0,0:00:46.40,0:00:48.12,Default,,0000,0000,0000,,is going to be on the credit side.
Dialogue: 0,0:00:48.12,0:00:52.48,Default,,0000,0000,0000,,And then, we want to make sure we credit\Nthe accounts receivable
Dialogue: 0,0:00:52.48,0:00:55.08,Default,,0000,0000,0000,,for this customer.
Dialogue: 0,0:00:55.08,0:01:01.96,Default,,0000,0000,0000,,And the credit memo issue was for $595.
Dialogue: 0,0:01:01.96,0:01:04.93,Default,,0000,0000,0000,,This $595
Dialogue: 0,0:01:04.93,0:01:10.11,Default,,0000,0000,0000,,cost us $390.
Dialogue: 0,0:01:13.82,0:01:17.98,Default,,0000,0000,0000,,So, we want to make sure we do\Nlike almost a reverse entry
Dialogue: 0,0:01:17.98,0:01:23.94,Default,,0000,0000,0000,,where we first debit\Nthe merchandise inventory.
Dialogue: 0,0:01:23.94,0:01:25.96,Default,,0000,0000,0000,,And then, we...
Dialogue: 0,0:01:25.96,0:01:30.79,Default,,0000,0000,0000,,credit cost of goods sold.
Dialogue: 0,0:01:30.79,0:01:35.86,Default,,0000,0000,0000,,And it was for $390, okay?
Dialogue: 0,0:01:35.86,0:01:40.90,Default,,0000,0000,0000,,So, now I want to go to my subsidiary\Nledger account for my customer,
Dialogue: 0,0:01:40.90,0:01:45.26,Default,,0000,0000,0000,,making sure that I put in\Nthat credit of $595.
Dialogue: 0,0:01:45.26,0:01:50.05,Default,,0000,0000,0000,,So, this is transaction N.
Dialogue: 0,0:01:51.90,0:01:56.41,Default,,0000,0000,0000,,And this is for credit memo number 2
Dialogue: 0,0:01:56.41,0:02:02.74,Default,,0000,0000,0000,,for $595 that we're giving back\Nto the customer.
Dialogue: 0,0:02:02.74,0:02:08.23,Default,,0000,0000,0000,,And so, this customer no longer owes us\N$3,950.
Dialogue: 0,0:02:08.23,0:02:10.35,Default,,0000,0000,0000,,By crediting it--
Dialogue: 0,0:02:10.35,0:02:13.19,Default,,0000,0000,0000,,This is, again,\Na subsidiary accounts receivable
Dialogue: 0,0:02:13.19,0:02:15.03,Default,,0000,0000,0000,,is still an accounts receivable account;
Dialogue: 0,0:02:15.03,0:02:17.87,Default,,0000,0000,0000,,the normal side's on the debit side.
Dialogue: 0,0:02:17.87,0:02:18.91,Default,,0000,0000,0000,,By crediting it,
Dialogue: 0,0:02:18.91,0:02:22.55,Default,,0000,0000,0000,,we're reducing the balance\Nthat the customer owed to us.
Dialogue: 0,0:02:22.55,0:02:25.31,Default,,0000,0000,0000,,This will complete\Nall our journal entries.
Dialogue: 0,0:02:25.31,0:02:27.59,Default,,0000,0000,0000,,You can check it against your solution.
Dialogue: 0,0:02:27.59,0:02:30.80,Default,,0000,0000,0000,,Um, if you went through the whole process\Nof doing a general ledger,
Dialogue: 0,0:02:30.80,0:02:33.36,Default,,0000,0000,0000,,you can also check against\Nthe general ledger solution
Dialogue: 0,0:02:33.36,0:02:35.43,Default,,0000,0000,0000,,for each account.
Dialogue: 0,0:02:35.43,0:02:38.67,Default,,0000,0000,0000,,Um, but my subsidiary account\Nis now put together.
Dialogue: 0,0:02:38.71,0:02:41.07,Default,,0000,0000,0000,,You can check it against the solution,
Dialogue: 0,0:02:41.07,0:02:44.43,Default,,0000,0000,0000,,but what you want to put together is
Dialogue: 0,0:02:44.43,0:02:47.75,Default,,0000,0000,0000,,the accounts receivable schedule,\Nokay?
Dialogue: 0,0:02:47.75,0:02:50.03,Default,,0000,0000,0000,,So, basically,\Nwe want to know
Dialogue: 0,0:02:50.03,0:02:53.27,Default,,0000,0000,0000,,what is the makeup\Nof my accounts receivable?
Dialogue: 0,0:02:53.27,0:02:55.19,Default,,0000,0000,0000,,So, what you want to do is,
Dialogue: 0,0:02:55.19,0:02:58.75,Default,,0000,0000,0000,,you would look at the balance\Nfor each of your customer.
Dialogue: 0,0:02:58.75,0:03:01.15,Default,,0000,0000,0000,,Uh, Durant, Durant, Durant.
Dialogue: 0,0:03:01.15,0:03:04.73,Default,,0000,0000,0000,,The balance is $250.
Dialogue: 0,0:03:04.73,0:03:08.71,Default,,0000,0000,0000,,And then, for Ron Lenham,
Dialogue: 0,0:03:08.71,0:03:13.05,Default,,0000,0000,0000,,it is...
Dialogue: 0,0:03:13.05,0:03:14.61,Default,,0000,0000,0000,,$3355.
Dialogue: 0,0:03:14.61,0:03:20.47,Default,,0000,0000,0000,,And then, also for--\Noops, excuse me--
Dialogue: 0,0:03:20.47,0:03:25.75,Default,,0000,0000,0000,,Penny, the balance is--
Dialogue: 0,0:03:25.75,0:03:27.25,Default,,0000,0000,0000,,Penny, Penny, Penny,
Dialogue: 0,0:03:27.25,0:03:31.41,Default,,0000,0000,0000,,the balance is $800.
Dialogue: 0,0:03:31.41,0:03:35.43,Default,,0000,0000,0000,,And then, for Jim Zamara.
Dialogue: 0,0:03:35.43,0:03:37.53,Default,,0000,0000,0000,,Zamara, sorry.
Dialogue: 0,0:03:37.53,0:03:40.89,Default,,0000,0000,0000,,Um, I'm awful, awful, awful with names.
Dialogue: 0,0:03:40.89,0:03:42.85,Default,,0000,0000,0000,,The balance is $750,
Dialogue: 0,0:03:42.85,0:03:45.69,Default,,0000,0000,0000,,which add up to be $5155.
Dialogue: 0,0:03:45.69,0:03:47.77,Default,,0000,0000,0000,,So, your balance\Nfor accounts receivable--
Dialogue: 0,0:03:47.77,0:03:49.97,Default,,0000,0000,0000,,So, here let's just show you\Nreally quickly.
Dialogue: 0,0:03:49.97,0:03:54.65,Default,,0000,0000,0000,,If you have done all of your\Ngeneral ledger correctly,
Dialogue: 0,0:03:54.65,0:03:56.05,Default,,0000,0000,0000,,you will see that,
Dialogue: 0,0:03:56.05,0:04:00.45,Default,,0000,0000,0000,,um, again, that beginning balance\Nis given to you under Data.
Dialogue: 0,0:04:00.45,0:04:04.61,Default,,0000,0000,0000,,So, under Data, that $5000,
Dialogue: 0,0:04:04.61,0:04:07.99,Default,,0000,0000,0000,,um, accounts receivable balance
Dialogue: 0,0:04:07.99,0:04:11.23,Default,,0000,0000,0000,,was make up a sum of between\Nall of your customer:
Dialogue: 0,0:04:11.23,0:04:14.95,Default,,0000,0000,0000,,$250, plus $550,\Nplus $800, plus $550
Dialogue: 0,0:04:14.95,0:04:17.27,Default,,0000,0000,0000,,would equals to $2150.
Dialogue: 0,0:04:17.27,0:04:19.83,Default,,0000,0000,0000,,If you have kept track\Nof all your transactions
Dialogue: 0,0:04:19.83,0:04:24.43,Default,,0000,0000,0000,,for accounts receivable,\Nthe total is $5155.
Dialogue: 0,0:04:24.43,0:04:28.55,Default,,0000,0000,0000,,The purpose of a schedule\Nof accounts receivable--
Dialogue: 0,0:04:28.55,0:04:30.27,Default,,0000,0000,0000,,Um, oops.
Dialogue: 0,0:04:30.27,0:04:33.27,Default,,0000,0000,0000,,The purpose of a schedule\Nof accounts receivable
Dialogue: 0,0:04:33.27,0:04:37.47,Default,,0000,0000,0000,,is to know that what is that make up\Nof $5,155?
Dialogue: 0,0:04:37.47,0:04:40.19,Default,,0000,0000,0000,,How much each customer owe you?
Dialogue: 0,0:04:40.19,0:04:44.07,Default,,0000,0000,0000,,And even more sophisticated report
Dialogue: 0,0:04:44.07,0:04:47.31,Default,,0000,0000,0000,,will be called\Na Schedule of Accounts Receivable,
Dialogue: 0,0:04:47.31,0:04:48.87,Default,,0000,0000,0000,,would also--
Dialogue: 0,0:04:48.87,0:04:52.15,Default,,0000,0000,0000,,You'll learn in a 200-level\Nfinancial accounting class;
Dialogue: 0,0:04:52.15,0:04:56.87,Default,,0000,0000,0000,,--where it will show, um,\Nnot only how much each customer owe you
Dialogue: 0,0:04:56.87,0:05:00.46,Default,,0000,0000,0000,,but how much they owe you\Nwithin 0 to 30 days,
Dialogue: 0,0:05:00.46,0:05:02.03,Default,,0000,0000,0000,,31 to 60 days,
Dialogue: 0,0:05:02.03,0:05:03.91,Default,,0000,0000,0000,,and then 61 to 90 days,
Dialogue: 0,0:05:03.91,0:05:06.23,Default,,0000,0000,0000,,or 90 days beyond.
Dialogue: 0,0:05:06.23,0:05:09.32,Default,,0000,0000,0000,,Usually,\Nthe longer they owe you the money,
Dialogue: 0,0:05:09.32,0:05:11.84,Default,,0000,0000,0000,,the less likely they will pay you back.
Dialogue: 0,0:05:11.84,0:05:14.00,Default,,0000,0000,0000,,And this would be\Nsomething that you will learn
Dialogue: 0,0:05:14.00,0:05:17.36,Default,,0000,0000,0000,,when you learn about\Nbad debt expense
Dialogue: 0,0:05:17.36,0:05:19.84,Default,,0000,0000,0000,,in Financial 200 financial accounting class.
Dialogue: 0,0:05:19.84,0:05:22.56,Default,,0000,0000,0000,,In this class, in your Introduction\Nto Accounting class,
Dialogue: 0,0:05:22.56,0:05:25.44,Default,,0000,0000,0000,,you always assume your customer\Nwill pay you on-- you know, on time--
Dialogue: 0,0:05:25.44,0:05:27.96,Default,,0000,0000,0000,,and you will always pay your vendors\Non time.
Dialogue: 0,0:05:27.96,0:05:30.24,Default,,0000,0000,0000,,But in financial accounting, a second--
Dialogue: 0,0:05:30.24,0:05:34.08,Default,,0000,0000,0000,,um, 200 level, you will learn\Nwhat happens when they don't pay you.
Dialogue: 0,0:05:34.08,0:05:36.68,Default,,0000,0000,0000,,Okay, this is a much longer video\Nthan I intended.
Dialogue: 0,0:05:36.68,0:05:38.68,Default,,0000,0000,0000,,Sorry, there was a lot of back and forth,
Dialogue: 0,0:05:38.68,0:05:42.96,Default,,0000,0000,0000,,and then I also wanted to give you\Nsome additional information.
Dialogue: 0,0:05:42.96,0:05:46.84,Default,,0000,0000,0000,,Um, the key again of this particular\Nvideo for this chapter
Dialogue: 0,0:05:46.84,0:05:49.96,Default,,0000,0000,0000,,is you need to know\Nhow to record journal entry
Dialogue: 0,0:05:49.96,0:05:52.88,Default,,0000,0000,0000,,for perpetual inventory system\Nunder the gross method.
Dialogue: 0,0:05:52.88,0:05:55.20,Default,,0000,0000,0000,,You need to know how to figure out
Dialogue: 0,0:05:55.20,0:05:58.84,Default,,0000,0000,0000,,and put together your\Nschedule of accounts receivable.
Dialogue: 0,0:05:58.84,0:06:01.32,Default,,0000,0000,0000,,Okay, well,\Nthank you for watching the video,
Dialogue: 0,0:06:01.32,0:06:04.08,Default,,0000,0000,0000,,and I hope that this is helpful\Nin your learning.
Dialogue: 0,0:06:04.08,0:06:06.08,Default,,0000,0000,0000,,Please email me if you have any questions,
Dialogue: 0,0:06:06.08,0:06:09.71,Default,,0000,0000,0000,,and I will see you guys later.\NThank you! Bye.