On October 22, a company provides services on account to a customer for $2,600, terms 3/13, n/30. The customer pays for those services on December 19. Record the transactions for the company when the services are provided on October 22 and when cash is collected on December 19. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Question

Business

Heath Zuniga

14 March, 23:41

On October 22, a company provides services on account to a customer for $2,600, terms 3/13, n/30. The customer pays for those services on December 19. Record the transactions for the company when the services are provided on October 22 and when cash is collected on December 19. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

+1

Answers (1)

Know the Answer?

Bob · Answer 1

A/R 2,600 debit

services revenues 2,600 credit

--to record services performed on account--

Cash 2,600 debit

A/R 2,600 credit

--to record collection from client--

Explanation:

We record the service performed as service revenue as the company already perform and earned the amount.

Then when the payment is perform it is beyond the discount period of 13 days thus, It pays the nominal amount.

The company debit the cash collected and write-off the accounts receivables.