Question

The Denver Broncos hold a big pre-season football ticket blitz and sell $2.4 million worth of tickets for cash for the upcoming seasons 8 home games. What is the journal entry to record these ticket sales?

Answer 1

Answer:

Debit account receivable $2.4 million; Credit Ticket Revenue $2.4 million

Explanation:

Answer 2

Answer:

Debit account receivable $2.4 million; Credit Ticket Revenue $2.4 million

Explanation:

Double entry is when a business records a debit and credit in relation to a transaction. Generally you debit the receiver and credit the giver.

In this instance sales of tickets were made by Denver Broncos of $2.4 million worth.

The sale involves receipt of cash, but it is preseason and customers have not yet received service so we debit accounts receivable for $2.4 million.

Revenue is made from the sale so we credit Ticket Revenue to recognise income made.