CHOOSE FROM THE FOLLOWING ACCOUNTS FOR THE CORRECT ACCOUNT OF ADJUSTING ENTRIES:deferred revenuesales Problem: A customer made an advance payment for the order of goods amountingto P480,000 on November 07. As of December 31, the company has shipped70% of the ordered goods.Determine the following:1. Record the adjusting entry for the year December 31, 2020 under the liabilitymethod.Dr. 1Cr.32. Record the adjusting entry for the year December 31, 2020 under the revenuemethod.6.Dr. 5Cr.

Adjusting entries are those journal entries which are passed at the end of the period for the…

Determine the following: 1. Record the adjusting entry for the year December 31, 2020 under the liability method. Dr. 1 Cr. 2. Record the adjusting entry for the year December 31, 2020 under the revenue method. 6. Dr

Determine the following: 1. Record the adjusting entry for the year December 31, 2020 under the liability method. Dr. 1 Cr. 2. Record the adjusting entry for the year December 31, 2020 under the revenue method. 6. Dr

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 4MC

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Question

CHOOSE FROM THE FOLLOWING ACCOUNTS FOR THE CORRECT ACCOUNT OF ADJUSTING ENTRIES:

deferred revenue

sales

Problem: A customer made an advance payment for the order of goods amounting
to P480,000 on November 07. As of December 31, the company has shipped
70% of the ordered goods.
Determine the following:
1. Record the adjusting entry for the year December 31, 2020 under the liability
method.
Dr. 1
Cr.
3
2. Record the adjusting entry for the year December 31, 2020 under the revenue
method.
6.
Dr. 5
Cr.

Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.

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