Question
A company using the accrual method of accounting performed services on account in August. The services were for $2,000 and the company gave the customer
A company using the accrual method of accounting performed services on account in August. The services were for $2,000 and the company gave the customer credit terms that state the amount is to be paid to the company in September.
a. Assuming that the company prepares monthly income statements, what will be the account debited for $2,000 in August?
Cash Accounts Receivable Service Revenue
b. Which account should the company credit for $2,000 in August?
Cash Accounts Receivable Service Revenue
c. In September, when the company receives the $2,000 from the customer, which account should the company debit?
Cash Accounts Receivable Service Revenue
d. In September, when the company receives the $2,000 from the customer, which account should the company credit?
Cash Accounts Receivable Service Revenue
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Essentials Of Federal Taxation 2019
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
10th Edition
1260189988, 1260189678, 9781260189674, 978-1259917103, 125991710X, 978-1260190045
