Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please can you correct my answers with explanation. Thanks Use the following information for questions 1 through 4: A company using the accrual method of

Please can you correct my answers with explanation. Thanks

Use the following information for questions 1 through 4:

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.

  1. Assuming that the company prepares monthly income statements, what will be the account debited for $2,000 in August?

  1. A. Cash

  2. B. Accounts Receivable

  3. C. Service Revenue

Option B is the correct answer

  1. Which account should the company credit for $2,000 in August?

  1. Cash

  2. Accounts Receivable

  3. Service Revenue

Option C is the correct answer

  1. In September when the company receives the $2,000 from the customer, which account should the company debit?

  1. Cash

  2. Accounts Receivable

  3. Service Revenue

Option A is the correct answer

  1. In September when the company receives the $2,000 from the customer, which account should the company credit?

  1. Cash

  2. Accounts Receivable

  3. Service Revenue

Option B is the correct answer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mylab Accounting With Pearson -- Access Card -- For Managerial Accounting

Authors: Karen W. Braun, Wendy M. Tietz

5th Edition

0134161645, 9780134161648

More Books

Students also viewed these Accounting questions

Question

What is strategic systems planning, and why should it be done?

Answered: 1 week ago