J. Wood performed carpentry services for $7500. He received cash of $5000 with the balance to be received within 28 days. Ignoring GST, the transaction is recorded as which of the following?

Question

Quizplus · Accepted Answer

Option A is correct as it correctly records the cash received and the revenue earned. The accounts receivable of $2500 represents the amount yet to be received within 28 days. Option B is incorrect as it records an accounts payable which does not exist in this transaction. Option C is incorrect as it does not reflect the revenue earned. Option D is incorrect as it records equity, which is not affected by this transaction.

J Wood Performed Carpentry Services for $7500