Question

Question 1 3.5 pts On May 17, Buckeye Corporation performed $800 of services for Betty DeRose, a customer. Betty paid for one-half of the bill on May 17 and agreed to pay the remainder within 30 days. On June 9, Betty paid the remaining amount owed Which of the following journal entries would Buckeye Corporation make on June 9? debit accounts receivable $400 and credit cash $400 debit cash $400 and credit service revenue $400 debit accounts payable $400 and credit service revenue $400 debit cash $400 and credit accounts payable $400 debit accounts payable $400 and credit accounts receivable $400 debit cash $400 and credit accounts receivable $400 debit accounts payable $400 and credit cash $400

Answer 1

Explanation to the question Rightarrow 17 may Rightarrow Revenue of $ 800 will be recorded in Books of Buck eye cooperation (series provider) since as per the concept of Revenue Recognition (Accounting standard - 9 in india) Revenue has to be recorded on accneal basis as and when earned and not an (each basis (i.e on Receipt of cash) Thus entry passed on 17 may \r\n each A/C or (800 times 50%) $ 400 Account Receivable or $ 400 To service Revenue $ 800 (Being Revenue Recorded on services rendered, 50 % payment received and 50 % receivable in next 30 days) entry on 9^th june Rightarrow Balance payment $ 400 Received cash A/c Dr $ 400 To Account Receivable $ 400 (Being balance payment Received)