Ask Question
15 April, 19:56

A company receives payment from one of its customers on August 5 for services performed on July 21. Which of the following entries would be recorded if the company uses accrual basis accounting?

+2
Answers (1)
  1. 15 April, 20:15
    0
    Cash (or Banks) Debit

    Accounts Receivables Credit

    Explanation:

    According to accrual basis accounting, the Sale was recorded in July, as follows:

    Accounts Receivables Debit

    Sales Credit

    So, in August the company must book:

    Cash (or Banks) Debit

    Accounts Receivables Credit

    In this way, AR balance = zero (no pending credit to be collected)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A company receives payment from one of its customers on August 5 for services performed on July 21. Which of the following entries would be ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers