A Company Performs $10,000 Of Services And Issues An Invoice To The Customer. Using The Accrual Method. What's The Correct Entry To Record The Transactions?

MCQ - A Company Performs $10,000 Of Services And Issues An Invoice To The Customer

Answer Of MCQ

The Correct Answer of this multiple choice question is (E) as under Accrual Basis of Accounting, we record Revenue when it is earned by the company whether the cash is received or not. As the company performed the services to the customer, so the company earned the revenue. So, we debit Accounts Receivable Account with an amount of $10,000 as the amount of revenue not yet received by the company from the customer and credit Sales Revenue Account.

Comments

Post a Comment