Accounting for Beginners #97 / ACCOUNTS RECEIVABLE / GENERAL LEDGER / SERVICE REVENUE / CPA STRENGTH


yo yo yo welcome back everybody this is CP a strength this is accounting for beginners I am the strongest licensed CPA in the state of Florida maybe the southeast we don’t know let’s just get started because everyone likes that especially for this accounting for beginners videos this is number 97 1 take Timmy right here 1 tizzle we do have a whole playlist please look at this playlist it’s helped thousands upon thousands of people for all your accounting for beginner needs best accounting playlist in the world can you please like the video for good luck comment and subscribe comment on your questions because lately I’ve been getting so many good questions I’m making all my videos out of questions now this question was the pertains to this video was on account an accounts receivable aru notice how I don’t have a are written down here because I think as a beginner you don’t want to abbreviate so I write out everything so you know what AR is its accounts receivable the person commenting said hey why there’s two journal entries for for this and the person was saying hey why is it revenue accounted for twice or in the second turn on tree why is it revenue in there like what’s up with that and I just wanted to say we’ll go through this example and I’ll kind of show you why revenue isn’t in there twice because you didn’t the the short answer is he didn’t do work twice you did you do performed one job so if you booked revenue twice because revenue was already in Revenue Service art is already in the first journal entry so if you booked it twice you’d have to to rather than to service revenues but you didn’t work twice so that doesn’t really work certainly this is number 97 and you perform services worth $500 on one 118 and you get paid later at 7 118 I don’t think really in your accounting textbooks and everything they’re gonna say hey you got paint later they usually say I think on account but I just want to let you know that so you realize you know you get paid later you didn’t get paid now so this one’s not this this one’s not really get not really gonna get into the journal entry and why it’s you know debits and credits and up or down I don’t have my DC idler here because I just want to get through why you wouldn’t put service revenue twice and kind of answer this question and we’ll just see how it goes anyways I’m making all kinds of counting videos so we’ll just see 20 ways you perform services worth $500 one one eighteen and you get paid later seven one eighteen now I got now I guess you wouldn’t really know you know if someone says hey I’ll pay you later you’re not gonna know when you get paid but let’s just say we’re doing this a lot out and you got paid out seven one eighteen so you really wouldn’t know you’re getting pay they say he’ll pay you later okay you’re like yeah sure bro anyways so the journal entry for that on one one eighteen because that’s when you perform services is worth five hundred dollars and you didn’t get paid and they’re gonna pay you later so what would be you would credit service revenue for five hundred dollars now your debit would be usually think about it if I would like to go with cash if they paid you cash you would debit cash for primary dollars and that’s an asset they didn’t in place of the cash they gave you an IOU accounts receivable so that would be your debit for five hundred dollars and let now we’re going to go down here to the general ledger that’s like a detailed detailing of each transaction in each account so you would have five hundred dollars in the accounts receivable on one 118 and totaling five hundred dollars you would also have service revenue of five hundred dollars in the general ledger now let’s go to seven 118 they say hey I got your money for you you’re like thank you very much can I have my money now okay so what happened on 718 well you got paid boy and and why did you get paid from the person that owed you money so the person who owed you money gave you the money now if you watch I always like to do cash first on journal entries and everything really cuz that’s that’s a big part of the accounting so you know if this is new to you watch some older videos please because I really go in depth this is my 97th accounting for beginners video I really go in depth about debits and credits and DCA leur that’s kind of probably why people watch me besides my personality which is coming back a little bit the flow is coming back a little bit I didn’t really post regularly for about seven months and a lot of my pizzazz a lot of my momentum drop I would suggest if you’re doing YouTube don’t stop doing YouTube I just had to anyways anyways so you get paid you get paid from someone who owed you money so that was an accounts receivable account but anyways you get paid so the debit for that is going to be five hundred dollars and then you are going to your the accounts receivable account is going to be credited for five hundred dollars because it is lowering its decreasing now think about it or some someone og5 our accounts receivable accounts five hundred dollars they owed it to you and then they paid you that money then they don’t owe it to you anymore so that account is decreasing so now the general ledger is not really on a double see the the journal entries is a double a double entry accounting system debits equal credits the general ledger is just an accounting and it’s not and it’s not a double entry so you would have so let’s see what we have on our general ledger on seven 118 well you have cash for five hundred and you would have a negative you have a negative five hundred in accounts receivable because they paid you back and it counts receivables on the credit so you know accounts receivable is an asset if it was in the pot if it was going going up in the letter it would be a debit but it’s not it’s going down so it’s a credit so anyways your accounts receivable account would be zero after all said and done after all said and done here the accounts receivable account would be zero your service revenue after all said none would be five hundred dollars your cash would be five hundred dollars and that’s what we got for today I hope helped out I do try to make these in two or three minutes or four or five that it’s my hope but I really just like to explain stuff and I’m trying to leave all the other stuff out and just make other videos for other stuff anyways I can’t tell you how much you know helping people growing my youtube channel really means to me it it really makes my day and you know what I will be back tomorrow or the next day I’ll be back very soon with another accounting for beginners and I love helping you guys and just stick with it and for anyways deuces

16 Replies to “Accounting for Beginners #97 / ACCOUNTS RECEIVABLE / GENERAL LEDGER / SERVICE REVENUE / CPA STRENGTH”

  1. "Maybe the srongest CPA in the south east, we don't know." Lol. Love the videos! Keep it up, glad your back

    Edit: you should roll up to every CPA firm in Florida to see if your the strongest lol. That be funny

  2. Can you please get a video about Accounts Receivable regarding allowance method of writing off bad debts or allowance for doubtful Accounts?

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