(Learning Objective 3: Adjusting the accounts) Bryson, Inc., collects cash from customers two ways: a. Accrued revenue....

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(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.

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Financial Accounting International Financial Reporting Standards

ISBN: 9780273777809

1st Global Edition

Authors: Walter T Harrison, Charles Horngren, Bill Thomas, Themin Suwardy

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