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Use the Information Below to Answer the Following Questions:
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Question 5

Multiple Choice

Use the information below to answer the following questions:
A consultant performs accounting services for a client on 30 June 2012 and bills the client $350, to be paid within 60 days. Payment is duly made on 29 August 2012. Accrual accounting is used by both parties.
-What is the journal entry made by the consultant on 29 August 2012?


A) DR Cash \quad\quad\quad\quad\quad\quad CR Accounts receivable
B) DR Cash \quad\quad\quad\quad\quad\quad CR Service revenue
C) DR Accounts receivable \quad CR Cash
D) DR Service revenue \quad\quad CR Accounts receivable

Correct Answer:

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