Accrued Revenue A law firm allows its clients to pay on the tenth of every month for services rendered rather than for each visit. Since the last billing cycle, the law firm provided 200 hours of services at $80 per hour.
a. Find the amount of accrued revenue the law firm should record at the end of the year.
The amount of accrued revenue= $16,000 (200 hours since last cycle × $80/hour)
b. Journalize the adjusting entry to record the asset for the accrued revenue