A company performs $10,000 of services and issues an invoice to the customer using the accrual method what’s the correct entry to record the transaction?

Some latter academics question and answer inquired students to express what they ponder is the main important element for a student to do in order for you to attain success. One that response stood out from the rest was practice. Successful persons aren’t born successful; they become successful with hard work and persistence. This is how you can attain your goals. the following some question and answer examples that you can implement to boost your knowledge and gain insight that will assist you to keep up your school studies.

Question:

A company performs $10,000 of services and issues an invoice to the customer using the accrual method what’s the correct entry to record the transaction?

Answer:

Based on the accrual method, the correct entry for $10,000 worth of services would be a debit to accounts receivable for $10,000 and a credit to Sales revenue for $10,000.

Why is this the correct entry?

The company has performed a certain service for a customer and hasn’t been paid for it. The customer therefore owes the company which makes them an account receivable.

The $10,000 will be considered revenue by the company so they will credit the revenue account. Accounts Receivables are assets so this account will be debited.

They can easily hopefully help the student solve the question by make use of the questions and answer examples. Then could definitely make some sharing in a group discussion and also study with the classmate relating to the topic, so another student also take up some enlightenment and still keeps up the school learning.

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