Collected $9,200 cash from customers on their accounts for previously billed services.

Question

BlackTom AI · Accepted Answer

The scenario describes collecting cash from customers for services that were previously billed. This means the company is converting its Accounts Receivable into Cash.

Option 1: 'Dr. Accounts Receivable 9,200  Cr. Cash 9,200' This entry would increase Accounts Receivable (a debit) and decrease Cash (a credit), which is the opposite of what actually happens when cash is collected on an existing receivable. Therefore, this option is incorrect.

Option 2: 'Dr. Cash 9,200      Cr. Accounts Receivable 9,200' This entry correctly increases Cash (debit) and decreases Accounts Receivable (credit), reflecting the collection of cash from customers on their outstanding balances. This aligns with the normal journal entry for collecting on an accounts receivable.

Option 3: 'Dr. Cash 9,200      Cr. Service Revenue 9,200' Debiting Cash and crediting Service Revenue would artificially recognize revenue again or misrepresent the transaction. The proper offset for collecting a receivable is a reduction of AR, not a revenue reversal, so this is incorrect.

Option 4: 'None of the above' would be chosen only if none of the listed entries correctly reflect the transaction. Since Option 2 does correctly represent the event, this option is incorrect.

In summary, the correct handling of cash collected on previously billed services is to debit Cash and credit Accounts Receivable, which is precisely what Option 2 states.

Collected $9,200 cash from customers on their accounts for previously billed services.单项选择题

类似问题

Company A provided $300 service to a customer today. The customer paid $100 cash today and will pay $200 in 10 days. Which entry is correct for the company A?

Company A provided $300 service to a customer today. The customer paid $100 cash today and will pay $200 in 10 days. Which entry is correct for the company A?

Select the journal entry to record the purchase.

Purchased $22,000 of cleaning equipment; paid $10,000 cash, with the remainder on account due within 30 days.

Borrowed $40,000 cash from the bank and signed a note payable agreeing to repay it in one year plus 10% interest.

Paid $17,200 cash for cleaning supplies.

$36,000 cash was invested in the company to begin the business in exchange for common stock.

Referring to the Invoice Posting Journal printed in Step 22 of the Practical Exam, how much will Product Sales be debited?

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单