Asked by
Giuseppe Alastra
on Nov 15, 2024
Verified
D.Debit Inc.has performed $700 of accounting services for a client but has not yet billed the client at the end of the accounting period.What adjusting entry must D.Debit prepare?
A) debit Cash and credit Deferred Revenue
B) debit Accounts Receivable and credit Deferred Revenue
C) debit Accounts Receivable and credit Service Revenue
D) debit Deferred Revenue and credit Service Revenue
Deferred Revenue
Income received by a company for goods or services yet to be delivered or performed, recognized as a liability on the balance sheet until earned.
Service Revenue
Income earned by a company for the services it provides to its customers.
Accounts Receivable
Money owed to a business by its clients for goods or services that have been delivered but not yet paid for.
- Differentiate among various revenue types and their recognition methods.
Verified Answer
AC
Learning Objectives
- Differentiate among various revenue types and their recognition methods.