Prepare the Summary Entries Necessary to Determine the Amount of Cash

question 77

Essay

Prepare the summary entries necessary to determine the amount of cash received from customers for each of the four independent situations below.
$$\begin{array} { c c c c c c } \text { Situation } & \begin{array} { c } \text { Sales } \\\text { revenue }\end{array} & \begin{array} { c } \text { Accounts } \\\text { receivable } \\\text { inc (dec) }\end{array} & \begin{array} { c } \text { Bad debt } \\\text { expense } \\\text { inc (dec) }\end{array} & \begin{array} { c } \text { Allowance for } \\\text { uncollectible } \\\text { Accounts inc }\end{array} & \begin{array} { c } \text { Cash received } \\\text { from customers }\end{array} \\\hline 1 & 200,000 & 10,000 & 0 & 0 & \\2 & 200,000 & ( 10,000 ) & 0 & 0 & \\3 & 200,000 & ( 10,000 ) & 2,000 & 1,000 & \\4 & 200,000 & 10,000 & 2,000 & ( 1,000 ) &\end{array}$$

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Definitions:

Excludable

A characteristic of a good for which it is possible to prevent individuals from enjoying its benefits unless they pay for it.

Artificially Scarce

A situation where a product or resource's availability is limited through artificial means rather than natural scarcity.

Public Good

A commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Artificially Scarce Goods

Products or services that have their availability limited through artificial means, such as through monopolies or government regulation, rather than through actual supply constraints.