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Examples of key journal entries

Accounting Tools

When goods or services are sold on credit, debit accounts receivable and credit sales. If a sale is for cash, then the debit is to the cash account instead of the accounts receivable account. Allowance for doubtful accounts entry. Example Expense Journal Entries Accounts payable entry.

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Three digit chart of accounts

Accounting Tools

Related Courses Bookkeeping Guidebook New Controller Guidebook A three digit chart of accounts allows a business to create a numerical sequence of accounts that can contain as many as 1,000 potential accounts. A sample three digit chart of accounts is shown below.

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Seven digit chart of accounts

Accounting Tools

Related Courses Bookkeeping Guidebook New Controller Guidebook The number of digits used to describe each account in a chart of accounts drives the level of detail that can be recorded. The seven digit chart of accounts is needed by larger organizations in which management wants to track information about departments within divisions.

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Chart of accounts definition

Accounting Tools

Related Courses Bookkeeping Guidebook New Controller Guidebook What is the Chart of Accounts? The chart of accounts is a listing of all accounts used in the general ledger of an organization. The chart is used by the accounting software to aggregate information into an entity's financial statements.

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Five digit chart of accounts

Accounting Tools

Related Courses Bookkeeping Guidebook New Controller Guidebook The number of digits used to describe each account in a chart of accounts drives the level of detail that can be recorded. A five digit chart of accounts is used by organizations that want to track information at the departmental level.