On Jan. 2, Callie Taylor Performed $800 Worth Of Services For A Client. The Client Paid $100 Immediately, But Promised To Pay The Balance Next Month. The Journal Entry To Record This Transaction In Callie Taylor's Books Would Be:
To solve problem / question, we record the Business Transactions from the points view of business of Callie Taylor, which is a service business providing services to its clients. When the Callie Taylor performed the services worth $800, then the business earned the revenue whether the cash is received or not according to Accrual Basis of Accounting . Here, the client paid $100 in cash and promised to pay the remaining $700 ($800 - $100) on the next month is a receivables for the Callie Taylor’s business, which is a current asset and shown on balance sheet under assets side. As the business received partially in cash against the services performed, so we record the following journal entry in the Books of Accounts of Callie Taylor’s business: (i) Cash a/c $100 ...