Bryson Accounting Services performed accounting services for a client in December.A bill was mailed to the client on December 30.The company received a check by mail on January 5.Which of the following accounts should appear on the balance sheet as of December 31 as related to the services performed?
A)Prepaid Expense
B)Accounts Receivable
C)Unearned Revenue
D)None,there is no entry in December.

Question

Quizplus · Accepted Answer

Since the bill was mailed on December 30, the services performed by Bryson Accounting Services should be recorded as Accounts Receivable on the balance sheet as of December 31. This represents the amount owed to the company by the client for the services provided. The fact that the payment was not received until January 5 is not relevant for the December balance sheet, as the services were performed in December.

Bryson Accounting Services Performed Accounting Services for a Client in December.A