How do I journalize this transaction?

I am practicing accounting online and I tried to do this questions but could not do them. I need help understanding whether 1) "completed $10,000 work on account is money earned already? Do I say Debit account receivable and credit services revenue? Can this transition be par to the assets of the Balance sheet? 2) Another question says, James completed work for a customer in the amount of $5,000 with cash to be collected in later date.

How is transition one and 2 are different? Are both part form of DR Revenue CR Services revenue or DR services Revenue CR cash?

I am curious about this transaction an would appreciate if anyone could help me. Thanks


0|0
10

Have an opinion?

What Girls Said 1

  • "1) "completed $10,000 work on account is money earned already?"------ yes

    "Do I say Debit account receivable and credit services revenue?" ----- yes cause it's on credit so you anticipate receivable and since it says "completed" you can definitely recognize revenue.

    "Can this transition be par to the assets of the Balance sheet?" ---- of course cause Accounts Receivable is an asset, a current asset in particular.

    "Another question says, James completed work for a customer in the amount of $5,000 with cash to be collected in later date.How is transition one and 2 are different?" ---- if my understanding on the English language is right, it's basically the same. cash to be collected on a later date indirectly means there's a credit term.

    "Are both part form of DR Revenue CR Services revenue or DR services Revenue CR cash?" --- neither, the journal entries you mentioned do not make any sense.

    0|0
    0|0

What Guys Said 0

Be the first guy to share an opinion
and earn 1 more Xper point!

Loading...