Some Examples
A couple of examples may make things clearer. What follows is a list of transactions, followed by the entries that would be made.
On January 3, 2002, the company receives $1,000 for services rendered:
On January 25, 2002, the company pays rent of $200:
On February 18, 2002, the company provides services and bills the customer $1,200:
On April 7, 2002, the company pays salaries of $2,000:
On May 4, 2002, the company receives the money ...
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