A company billed a client for services rendered in January. The payment was received, partially in January and the balance in February. When should the entry be made to record the service revenue?

Question

Quizplus · Accepted Answer

Revenue should be recorded in January when the services were rendered, according to the accrual basis of accounting, which recognizes revenue when earned, regardless of when payment is received.

A Company Billed a Client for Services Rendered in January