Kincaid Company provided consulting service of $2,500 to a customer who paid $1,300 and promised to pay the remainder next month. Which of the following journal entries correctly records this transaction? a. Cash1,300, Accounts payable1,200, Consulting revenue 2,500b. Cash1,300, Accounts receivable1,200, Consulting revenue2,500c. Cash1,300, Consulting revenue1,300, Consulting revenue2,50d. Cash1,300, Accounts receivable1,200

Question

Business

Molly Wilkins

25 November, 22:13

Kincaid Company provided consulting service of $2,500 to a customer who paid $1,300 and promised to pay the remainder next month. Which of the following journal entries correctly records this transaction? a. Cash1,300, Accounts payable1,200, Consulting revenue 2,500b. Cash1,300, Accounts receivable1,200, Consulting revenue2,500c. Cash1,300, Consulting revenue1,300, Consulting revenue2,50d. Cash1,300, Accounts receivable1,200

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Answers (1)

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Bronson Cunningham · Answer 1

The journal entry correctly records this transaction is:

b. Cash 1,300, Accounts receivable 1,200, Consulting revenue 2,500

Explanation:

Kincaid Company provided consulting service of $2,500 to a customer, the company record revenue for consulting service of $2,500

Customer paid $1,300 and promised to pay the remainder next month, the company record cash received of $1,300 and the remainder by decreasing accounts receivable of $1,200 by the entry:

Debit Cash $1,300

Debit Accounts receivable $1,200

Credit Consulting revenue $2,500