Question

storybook company provided services to several customers during the month of december. these services have not yet been paid by the customers

Answer 1

Based on the fact that the services have not yet been paid for by the customers, the way to record the adjusting entry is to:

• debit accounts receivable
• credit services revenue

How should the unpaid services be recorded?

Accounting uses the accrual basis which means that revenue is recognized in the year that the service was given or good was delivered and not the period when cash exchanged hands.

Storybook company has provided services in December which falls under the current year. To record an adjusting entry, the company needs to credit service revenue to show that they have recognized the revenue. Accounts receivable will need to be debited to show that Storybook company is owed for the services by their customers.

Find out more on accrual basis at brainly.com/question/25817056

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