A Roofing Company Collects Fees When Jobs Are Complete

question 128

Multiple Choice

A roofing company collects fees when jobs are complete.The work for one customer,whose job was bid at $3,000,has been completed as of December 31,but the customer has not yet been billed.Assuming adjustments are only made at year-end,what is the adjusting entry the company would need to make on December 31,the calendar year-end?

• A)Debit Cash,$3,000; credit Roofing Fees Revenue,$3,000.
• B)Debit Roofing Fees Revenue,$3,000; credit Accounts Receivable,$3,000.
• C)Debit Accounts Receivable,$3,000; credit Roofing Fees Revenue,$3,000.
• D)Debit Cash,$3,000; credit Accounts Receivable,$3,000.
• E)No adjustment is required.

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Definitions:

Trumpet

A brass wind instrument with a flared bell and bright, penetrating tone, often used in classical and jazz music.

Writing

The act, process, or practice of recording thoughts, ideas, or information by inscribing symbols or characters on a surface.

Absence

The state of being away from a place or person, or the neglect to perform a duty or requirement.

Invoice

A document issued by a seller to a buyer listing the goods or services provided, their prices, and the total amount due.