Sugar,IncMade an Adjusting Entry on December 31 to Record $580

question 24

Multiple Choice

Sugar,Inc.made an adjusting entry on December 31 to record $580 of revenues earned but not yet collected.Which of the following describes the adjusting entry?

• A)Cash should be decreased by $580 and Sales Revenue should be increased by $580.
• B)Deferred Revenue should be increased by $580 and Sales Revenue should be decreased by $580.
• C)Accounts Receivable should be increased by $580 and Sales Revenue should be increased by $580.
• D)Accounts Receivable should be increased by $580 and Deferred Revenue should be increased by $580.

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Definitions:

Bigger Piece

A phrase commonly used to refer to a larger share or portion of something, such as profits or market segments.

Counter Party's Gains

The profits or advantages obtained by the opposite party involved in a financial transaction or agreement.

Agreement

A mutual understanding or arrangement between two or more parties, often formalized by a contract.

Bargaining Position

The relative strength or advantage one party has in negotiations or deal-making scenarios.