A Business Maintains Subsidiary Accounts for Each of Its Customers

question 60

Essay

A business maintains subsidiary accounts for each of its customers.On April 7,the business provides $2,500 in services to Anne Hill on account.The business sells $4,000 (sales price)of merchandise inventory to Ron Wilson on account.
The full amount was collected from each customer on April 26.
Prepare the journal entries for April 7 and April 26.Ignore Cost of Goods Sold and omit explanations.

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Definitions:

Brown-black Pigment

Melanin, the natural substance in the body that gives color to the skin, hair, and eyes, and offers protection against UV radiation.

Subcutaneous

Concerning anything that is situated below the skin layer.

Dermis

The thick layer of tissue below the epidermis in mammalian skin, containing blood capillaries, nerve endings, sweat glands, and hair follicles.

Dilate

To enlarge, expand in size; to increase the size of an opening.