An Accountant Has Billed Her Clients for Services Performed in October

question 11

Multiple Choice

An accountant has billed her clients for services performed in October. In November, she receives payments from her clients. What entry will she make upon receipt of the payments?

• A) Debit Unearned Revenue and credit Service Revenue.
• B) Debit Cash and credit Service Revenue.
• C) Debit Cash and credit Accounts Receivable.
• D) Debit Accounts Receivable and credit Service Revenue.

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Definitions:

Bank Reconciliation

The process of matching the balances in an entity's accounting records with the corresponding bank statement.

Note Collected

A financial transaction where a note receivable, typically a written promise to pay a debt, is collected or paid off.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those shown on a bank statement to ensure they are in agreement.