BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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DR Cash 25, 000DR Accounts Receivable 27, 000CR Unearned Service Revenue 52, 000
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DR Cash 52, 000CR Service Revenue 52, 000
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DR Cash 27, 000DR Accounts Receivable 25, 000CR Unearned Service Revenue 52, 000
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DR Cash 27, 000CR Accounts Receivable 27, 000
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Detailed explanation-1: -When cash is received, the cash account is debited. When cash is paid out, the cash account is credited.
Detailed explanation-2: -Accounts Receivable Journal Entry. Account receivable is the amount the company owes from the customer for selling its goods or services. The journal entry to record such credit sales of goods and services is passed by debiting the accounts receivable account with the corresponding credit to the Sales account.
Detailed explanation-3: -Answer choice: b. The collection of cash from cash customers requires an increase to the cash account and an increase to the revenue account called fees earned.
Detailed explanation-4: -Account Receivable is an account created by a company to record the journal entry of credit sales of goods and services, for which the amount has not yet been received by the company. The journal entry is passed by making a debit entry in Account Receivable and corresponding credit entry in Sales Account.