Question: When a customer buys services on account, it should be recorded as: Question 7 options: a debit to cash and a credit to accounts receivable.

When a customer buys services on account, it should be recorded as:
Question 7 options:
a debit to cash and a credit to accounts receivable.
a credit to revenue and a debit to accounts receivable.
a credit to deferred revenue and a debit to inventory.
a debit to cash and a credit to accounts payable.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Which of the following may not be true if excessive quantities of inventory are ordered? Multiple Choice Storage and interest costs may increase. Goods might have to be sold at large discounts. There...

Q:

When a customer buys services on account, it should be recorded as: Multiple Choice a debit to cash and a credit to accounts recelvable a credit to revenue and a debit to accounts receivable. a...

Q:

Which of the following entries journalizes the payment of an account payable? Question 3 options: debit Cash; credit Accounts Payable debit Accounts Receivable; credit Cash debit Cash; credit...

Q:

When a customer buys services on account, it should be recorded by the company as: Answer a debit to Cash and a credit to Accounts Receivable. a debit to Accounts Receivable and a credit to Revenue....

Q:

Required information Exercise 7-7A Effect of recognizing uncollectible accounts on the financial statements: percent of receivables allowance method LO 7-2 Skip to question [The following information...

Q:

Exercise 7-7A (Algo) Effect of recognizing uncollectible accounts on the financial statements: percent of receivables allowance method LO 7-2 Skip to question [The following information applies to...

Q:

Required information Exercise 7-7A Effect of recognizing uncollectible accounts on the financial statements: percent of receivables allowance method LO 7-2 Skip to question [The following information...

Q:

43 45 Received $12,000 cash from a customer for services to be provided in the future. Account Name Debit Credit A. Cash 12,000 Accounts Receivable 12,000 B. Accounts Receivable 12,000 Cash 12,000 C....

Q:

Exercise 7-7A Effect of recognizing uncollectible accounts on the financial statements: percent of receivables allowance method LO 7-2 Skip to question [The following information applies to the...

Q:

FehCutzRPR9sEprhrmN-r5f2OVVqXq-duQidwqjMkT2uOSZO/formResponse When a business buys supplies on account, the right recording process will be: 2 po Debit Cash, credit supplies Debit Supplies, credit...

Q:

A Pt(II) complex of tetramethyldiethylenetriamine is attacked by Cl 10^5 times less rapidly than the diethylenetriamine analogue. Explain this observation in terms of an associative rate-determining...

Q:

Consider the export subsidy shown in Figure 11.3. Assuming that the export subsidy remains $20, what are the effects of a decline in the world price from $100 to $90? Show the effects using a graph,...

Q:

Samuel Corporation's budgeted production is 5 3 , 0 0 0 units per mopth. Each unit requires 2 hours of direct labor lo complete. The direct labor cost if A . $ 2 , 3 8 5 , 0 0 0 B . 8 5 , 3 0 0 , 0 0...

Q:

Suppose you have finished your BA and are considering getting a Master's. Suppose also that we can divide the rest of your life into 3 periods and the per period interest rate is 5%. If you do not...