You Are the Accounting Manager for a Small Machine Shop

question 8

Essay

You are the accounting manager for a small machine shop.Your bookkeeper has asked you to review a journal entry that she made:
$\begin{array}{ll}\text { Date}&\text { Account and Explanation}&\text { Debit}&\text { Credit}\\\hline\text { May } 5 & \text { Cash }&2,500 \\&\text { Service Revenue } \\& \text { Revenue }&&2,500\end{array}$
Is this journal entry correct? Why or why not?

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Definitions:

Intermediaries

Entities or people who act as middlemen in the distribution channel between producers and consumers, facilitating the sale of products.

Buyer and Seller

The two parties involved in a transaction where goods or services are exchanged for money or other compensation.

Prime Effect

A cognitive bias where an individual's exposure to a stimulus influences their response to a subsequent stimulus, without conscious guidance or intention.

Channel Conflict

A situation in marketing where conflicts arise between different distribution channels for the same product, potentially harming the brand or sales.