A company receives payment from one of its customers on August 5 for services performed on July 21. Which of the following entries would be recorded if the company uses accrual basis accounting? A. Cash 1,000 Service Revenue 1,000 B. Accounts Payable 1,000 Cash 1,000 C. Service Revenue 1,000 Cash 1,000 D. Cash 1,000 Accounts Receivable 1,000
A company receives payment from one of its customers on August 5 for services performed on July 21. Which of the following entries would be recorded if the company uses accrual basis accounting? A. Cash 1,000 Service Revenue 1,000 B. Accounts Payable 1,000 Cash 1,000 C. Service Revenue 1,000 Cash 1,000 D. Cash 1,000 Accounts Receivable 1,000
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter3: Basic Accounting Systems: Accrual Basis
Section: Chapter Questions
Problem 2SEQ: On January 24, 20Y8, Niche Consulting collected $5,700 it had hilled its clients for services...
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Question
A company receives payment from one of its customers on August 5 for services performed on July 21. Which of the following entries would be recorded if the company uses accrual basis accounting?
Cash
|
1,000
|
|
Service Revenue
|
|
1,000
|
Accounts Payable
|
1,000
|
|
Cash
|
|
1,000
|
Service Revenue
|
1,000
|
|
Cash
|
|
1,000
|
Cash
|
1,000
|
|
|
|
1,000
|
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