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A Company Receives Payment from One of Its Customers on August

Question 19

Multiple Choice

A company receives payment from one of its customers on August 5 for services performed on July 21.Which of the following entries would be recorded if the company uses accrual basis accounting?


A)  Cash 1,000 Accounts Receivable 1,000\begin{array} { | c | r | r | } \hline \text { Cash } & 1,000 & \\\hline \text { Accounts Receivable } & & 1,000 \\\hline\end{array}
B)  Salaries Expense 1,000 Cash 1,000\begin{array} { | c | r | r | } \hline \text { Salaries Expense } & 1,000 & \\\hline \text { Cash } & & 1,000 \\\hline\end{array}
C)  Cash 1,000 Service Revenue 1,000\begin{array} { | c | r | r | } \hline \text { Cash } & 1,000 & \\\hline \text { Service Revenue } & & 1,000 \\\hline\end{array}
D)  Supplies 1,000 Cash 1,000\begin{array} { | r | r | r | } \hline \text { Supplies } & 1,000 & \\\hline \text { Cash } & & 1,000 \\\hline\end{array}

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