The Journal Entry to Record a Credit Sale Ignoring Cost

question 37

Multiple Choice

The journal entry to record a credit sale ignoring cost of goods sold is

• A)Cash
• Sales Revenue
• B)Cash Service Revenue
• C)Accounts Receivable
• Sales Returns and Allowances
• D)Accounts Receivable
• Sales Revenue

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Definitions:

Service Revenue

Income earned by a company for performing a service rather than selling physical goods.

Salaries and Wages Expense

The total amount paid to employees for services rendered during a specific period; considered an operating expense.

Unearned Subscription Revenue

Income received from subscriptions before the service has been fully delivered or the term of the subscription has been fulfilled.

Liability

Financial obligations or debts that an entity owes to another party, which need to be settled over time through the transfer of economic benefits including money, goods, or services.