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Lelechka [254]
3 years ago
5

On December 28, I. M. Greasy, Catering completed $600 of catering services. As of December 31, the customer had not been billed

nor had the transaction been recorded. Demonstrate the required adjusting entry by choosing the correct statement below.
Credit Acciunts receivable for $600.
Credit Catering revenue for $600.
Debit Unearned revenue for $600.
Debit Accounts receivable for $600.
Business
1 answer:
Alex3 years ago
5 0

Answer: Debit Accounts receivable for $600.

Explanation:

The customer had not been billed so that means that they still owe the company. This would make them an accounts receivable so the adjusting entry will have to debit the Accounts Receivable account for $600 to show that it is increasing.

This amount will be credited to the Accrued revenue account to show that the cash has not yet been received.

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Answer:

a) $1,000

Explanation:

Early Settlement Discount

This form of quotation is common with suppliers offering their customers deferred payment arrangement in a sale contract. Usually, under this arrangement customers are allowed to purchase goods on credit and settle their acccount at a specified  later date.

However, to encourage customers to pay up their outstanding earlier than expected, suppliers do offer early settlement discount as incentives to induce prompt payment.

A quotation of 2/10, n/30

This implies that the customer is a given a 30-day period from the date of purchase within which he is expected to settle his account. However, if he does so within the next 10 days of purchase he will be given a 2% discount.

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Savannah Corporation purchased 35,000 shares of common stock of the Boulet Corporation for $50 per share on January 2, 2017. Dur
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Savannah Corporation should report revenue from investment for 2017 in the amount of $80,000.

<h3>Amount to be reported as revenue</h3>

First step

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Second step

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