CJ Inc.provides tax services on April 14th.They receive payment for their services on April 29.Which of the following is an appropriate journal entry for April 14th?
A) No journal entry is made until payment is received.
B) Debit Unearned Revenue and credit Tax Preparation Revenue.
C) Debit Cash and credit Tax Revenue.
D) Debit Accounts Receivable and credit Tax Preparation Revenue.

Question

Quizplus · Accepted Answer

On April 14th, when the service is provided, CJ Inc. should record the revenue earned by debiting Accounts Receivable and crediting Tax Preparation Revenue, as the payment is yet to be received.

CJ IncProvides Tax Services on April 14th