Suppose you started your own landscaping business. A customer paid you $140 in advance to mow her
Question:
Suppose you started your own landscaping business. A customer paid you $140 in advance to mow her lawn while she was on vacation. You also performed landscaping services for a local business, but the business hasn’t paid you the $325 fee yet. In addition, a customer paid you $90 cash for landscaping services. Answer the following questions about the correct way to account for your revenue under accrual accounting:
1. Name the accounts used to record these events.
2. Prepare the journal entries to record the three transactions.
Step by Step Answer:
Req 1 The accounts used include the assets CashandAccounts Receivablethe liabi...View the full answer
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A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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