(Learning Objective 3: Adjusting the accounts) Bryson, Inc., collects cash from customers two ways: a. Accrued revenue....
Question:
(Learning Objective 3: Adjusting the accounts) Bryson, Inc., collects cash from customers two ways:
a. Accrued revenue. Some customers pay Bryson after Bryson has performed services for the customer. During 20X6, Bryson made sales of $60,000 on account and later received cash of $45,000 on account from these customers.
b. Unearned revenue. A few customers pay Bryson in advance, and Bryson later performs the service for the customer. During 20X6 Bryson collected $7,500 cash in advance and later earned $3,500 of this amount.
Journalize for Bryson
a. Earning service revenue of $60,000 on account and then collecting $45,000 on account.
b. Receiving $7,500 in advance and then earning $3,500 as service revenue.
Step by Step Answer:
Financial Accounting International Financial Reporting Standards
ISBN: 9780273777809
1st Global Edition
Authors: Walter T Harrison, Charles Horngren, Bill Thomas, Themin Suwardy