Greg operates a sizeable newspaper delivery service. On the last day of each month, Greg receives a statement from the newspaper publisher detailing how much money Greg earned that month from delivering papers. On the 10th day of the following month, Greg receives the cash for the preceding month’s deliveries. On December 31, Greg received a statement from the newspaper publisher notifying him that he had earned $13,700 for his December deliveries. Because December 31 is the end of Greg’s fiscal year, he makes adjusting entries at that time. Prepare the ADJUSTING journal entry necessary on December 31 to record the revenue that Greg has earned but not yet received.
Greg operates a sizeable newspaper delivery service. On the last day of each month, Greg receives a statement from the newspaper publisher detailing how much money Greg earned that month from delivering papers. On the 10th day of the following month, Greg receives the cash for the preceding month’s deliveries. On December 31, Greg received a statement from the newspaper publisher notifying him that he had earned $13,700 for his December deliveries. Because December 31 is the end of Greg’s fiscal year, he makes adjusting entries at that time. Prepare the ADJUSTING journal entry necessary on December 31 to record the revenue that Greg has earned but not yet received.
Chapter6: Business Expenses
Section: Chapter Questions
Problem 27P
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Question
Greg operates a sizeable newspaper delivery service. On the last day of each month, Greg
receives a statement from the newspaper publisher detailing how much money Greg
earned that month from delivering papers. On the 10th day of the following month, Greg
receives the cash for the preceding month’s deliveries.
On December 31, Greg received a statement from the newspaper publisher notifying him
that he had earned $13,700 for his December deliveries. Because December 31 is the end
of Greg’s fiscal year, he makes adjusting entries at that time. Prepare the ADJUSTING
journal entry necessary on December 31 to record the revenue that Greg has earned but
not yet received.
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