Ask Question
28 December, 20:29

On December 28, I. Greasy Catering Company completed $600 of catering services. As of December 31, the customer had not been billed nor had the transaction been recorded. Demonstrate the required adjusting entry by choosing the correct statement below. Click the answer you think is right. a. Debit Accounts receivable for $600. b. Credit Accounts receivable for $600. c. Debit Catering revenue for $600. d. Debit Unearned revenue for $600.

+5
Answers (1)
  1. 28 December, 22:08
    0
    a. Debit Accounts receivable for $600

    Explanation:

    As Greasy catering company provided services but had not got the bill from the customer, it increases an asset. According to the revenue recognition principle, revenue has recognized whenever it is provided not when the cash is received. In that case, the journal entry to record the transaction is -

    Accounts receivable (Debit) $600

    Revenue (Catering) (Credit) $600

    Accounts receivable is debit because the company owes the amount from the customers.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On December 28, I. Greasy Catering Company completed $600 of catering services. As of December 31, the customer had not been billed nor had ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers