Question
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.
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Assuming that the company prepares monthly income statements, what will be the account debited for $2,000 in August?
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A. Cash
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B. Accounts Receivable
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C. Service Revenue
Option B is the correct answer
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Which account should the company credit for $2,000 in August?
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Cash
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Accounts Receivable
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Service Revenue
Option C is the correct answer
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In September when the company receives the $2,000 from the customer, which account should the company debit?
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Cash
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Accounts Receivable
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Service Revenue
Option A is the correct answer
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In September when the company receives the $2,000 from the customer, which account should the company credit?
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Cash
-
Accounts Receivable
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Service Revenue
Option B is the correct answer
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