Answered: Extreme Sports sold 3,000 monthly…

Extreme Sports sold 3,000 monthly subscriptions at $26 each for services provided during February $17,805 was collected in cash and the rest was sold on account What is the credit to Service Revenue?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 2P: Medwig Corporation has a DSO of 17 days. The company averages 3,500 in sales each day (all customers...

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Concept explainers

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.

Question

Extreme Sports sold 3,000 monthly subscriptions at $26 each for services provided during February $17,805 was collected in cash and the rest was sold on
account
What is the credit to Service Revenue?

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Step 1: Introducing Journal Entries

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Accounting for Cash and cash equivalents

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