Healthy Lawn Maintenance Company started a lawn services business on January 1, 2013.It sends invoices to its customers for lawn maintenance services at the end of each month, and expects the customer to pay within 30 days.During 2013, Healthy Lawn Maintenance billed its customers a total of $2,000,000 for services rendered during the year.It made journal entries at the end of each month.
(Use the Healthy Lawn information to answer this question.) The aggregate effect of these entries during 2013 is as follows:
A) Sales Revenue . . . . . . . .. . . . . . . . . . . . 2,000,000
Accounts Receivable, Gross . . ... . . . . . . 2,000,000
B) Sales Revenue . . . .. . . . . . . . . . . . .. . . . 2,000,000
Accounts Receivable, Net . .. . . ... . . . . 2,000,000
C) Accounts Receivable, Net . . . . . . . . . . . . . . 2,000,000
Sales Revenue . . . . . . . . . . . . . . . 2,000,000
D) Accounts Receivable, Gross . . . . . . . . .. . . . 2,000,000
Sales Revenue . . . . . . . . . . . . . . . . 2,000,000
E) Notes Receivable, Gross . . . . . . . . . . . . . . 2,000,000
Sales Revenue . . . . . . . . . . . . . . . . 2,000,000
Correct Answer:
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