Scenario: On 28 June 2021, Torquay Surf School provides surfing lessons to a group of aged pensioners for which it has already issued an invoice for payment. The fee is $1000, but as at the end of the financial year, which is 30 June 2021, it has not been paid by the group of pensioners. Issue: You have been asked to establish:

• what accounts would be affected by recognising this income

• if the accounts receivable is an asset. Solution: When determining the solution, consider the following.