Suppose you started up your own landscaping business. A customer paid you $170 in advance to mow his or her lawn while he or she was on vacation. You performed landscaping services for a local business but the business hasn’t paid you the $375 fee yet. A customer pays you $80 cash for landscaping services. Answer the following questions about the correct way to account for your revenue under accrual-basis accounting:
1. Name the accounts used to record these events.
2. Prepare the journal entries to record the three transactions.

  • CreatedApril 29, 2014
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