Accounts Receivable should be increased for:

Question

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Companies that provide accounting,legal,or promotional services that span more than one month are unlikely to receive cash or bill customers until the services have been provided in full.The revenue recognition principle indicates revenues should be recorded during the period earned.Thus,an accrual adjustment is needed to increase Accounts Receivable on the balance sheet and increase the related revenue account on the income statement.

Accounts Receivable Should Be Increased For