The Entry to Record Estimated Service Expenses Related to Sales

question 76

Multiple Choice

The entry to record estimated service expenses related to sales would include a

• A) Credit to Sales Revenue
• B) Debit to Sales Revenue
• C) Debit to Estimated Liability for Service
• D) Credit to Estimated Liability for Service

---

Definitions:

Job Cost Sheet

A record that tracks the costs associated with a specific job or order, including materials, labor, and overhead costs.

Direct Labor

The cost of wages for employees who directly manufacture products or provide services.

Factory Overhead Applied

The assignment of all indirect costs of manufacturing to the goods produced, including costs such as utilities and maintenance for the manufacturing plant.

Actual Costs

The exact expenses incurred during the production or execution of a project or operation.