Question
My testbook says that Adjusting entries never involve the cash account.So,if a firm performs services for a consumer and receives service revenue $800 paid by
My testbook says that "Adjusting entries never involve the cash account".So,if a firm performs services for a consumer and receives service revenue $800 paid by credit card,on June 30th it receives $400 cash from this transaction,another $400 will be received in another month.So on June 1st,the transaction is:
Dr Cr
June 1 st account receivable 800
service revenue 800
On June 30th,there are two entries:
1. Dr Cr
June 30th cash 400
account receivable 400
2. June 30th account receivable 400
service revenue 400
Since "Adjusting entries never involve the cash account",the No.1 transaction on June 30th is not an adjusting entry right?Only No.2 is an adjusting entry?
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The Marketing Audit Translating Marketing Theory Into Practice The Marketing Series
Authors: Malcolm McDonald
1st Edition
0750600896, 978-0750600897
