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Horizon Company, an Internet Service Provider, Has 1,000,000 Customers

Question 56

Multiple Choice

Horizon Company, an internet service provider, has 1,000,000 customers. The customers make electronic payments of $70 each for that month's service on the last day of each month. Horizon Company does not send any bills to their customers.
The company's journal entry on the day they receive the payment will include:


A) A credit to Internet Service Revenue for $70,000,000
B) A debit to Accounts Receivable for $70,000,000
C) A credit to Accounts Receivable for $70,000,000
D) A debit to Internet Service Expense for $70,000,000

Correct Answer:

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