Ask Question
9 September, 15:11

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?

+5
Answers (1)
  1. 9 September, 16:51
    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?
Get 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 there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers