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31 May, 08:47

Mcdever corporation bills a customer $5,100 at the end of the year for services provided. the adjusting entry mcdever should make to accrue the amount collectible is:

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  1. 31 May, 09:57
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    Debit Accounts receivable $5,100

    Credit Sales/Revenue $5,100

    Explanation:

    The amount billed to a customer for a service rendered or good sold is known as the revenue.

    When revenue is earned and cash is received, the accounts involved are sales/revenue account and the cash account otherwise, where revenue is earned but cash is yet to be collected, the accounts involved would be sales/revenue account and the accounts receivable.

    Where Mcdever corporation bills a customer $5,100 at the end of the year for services provided. the adjusting entry mcdever should make to accrue the amount collectible is;

    Debit Accounts receivable $5,100

    Credit Sales/Revenue $5,100
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