Solved

Healthy Lawn Maintenance Company Started a Lawn Services Business on January

Question 74

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents