Tomlin & Company provides music for special occasions.On January 14,the Smith family hired Tomlin for an upcoming family wedding for an agreed upon fee of $10,000.The wedding was scheduled for May 23.As part of the agreement,the Smiths paid Tomlin half of the fee at the end of April with the remaining amount due by the end of June.How would Tomlin record the receipt of the final payment in June?

Question

Quizplus · Accepted Answer

When Tomlin receives the final payment, it decreases the Accounts Receivable (since the Smith family owed money for services agreed upon) and increases Cash. The credit to Accounts Receivable reflects the reduction in the amount owed by the Smith family.

Tomlin & Company Provides Music for Special Occasions