A Company Receives Payment from One of Its Customers on August

question 150

Multiple Choice

A company receives payment from one of its customers on August 5 for services performed on July 21.Which of the following entries would be recorded if the company uses accrual basis accounting?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Cash } & 1,000 & \\
• \hline \text { Accounts Receivable } & & 1,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Salaries Expense } & 1,000 & \\
• \hline \text { Cash } & & 1,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Cash } & 1,000 & \\
• \hline \text { Service Revenue } & & 1,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | r | r | r | }
• \hline \text { Supplies } & 1,000 & \\
• \hline \text { Cash } & & 1,000 \\
• \hline
• \end{array}\]

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Definitions:

France

A country in Western Europe known for its rich history, art, architecture, and culinary traditions.

Italy

A country in southern Europe, known for its rich history, culture, art, and significant contributions to the development of Western civilization.

Psalter of Saint Louis

A medieval illuminated manuscript, notable for its detailed and elaborate illustrations of biblical psalms, associated with King Louis IX of France.

Stained Glass

In Gothic architecture, the colored glass used for windows.