Question Mode

Multiple Choice Question

What is the effect of the December $31$ adjusting entry to record $$400$ of revenue for which the seller has performed for its customers but not yet collected?

Multiple choice question.

Cash should be decreased by $$400$ and sales revenue should be increased by $$400.$

Accounts receivable should be increased by $$400$ and sales revenue should be increased by $$400.$

Deferred revenue should be increased by $$400$ and sales revenue should be decreased by $$400.$

Accounts receivable should be increased by $$400$ and deferred revenue should be increased by $$400.$