Your Best Advisors,a Service Company,uses Reversing Entries

question 82

Multiple Choice

Your Best Advisors,a service company,uses reversing entries.On March 31,2016,they journalized and posted the following adjusting entry to accrue Utilities Expense:

Which of the following entries is the correct reversing entry to be prepared on April 1,2016?

---

Definitions:

Retail Business

A business entity that sells goods or services directly to consumers.

Service Business

A business that provides intangible products or services to customers.

Gross Profit

The difference between sales and the cost of goods sold, representing the profit from buying and selling goods before other expenses are taken out.

Cost of Merchandise Sold

The total expense incurred by a company to buy or manufacture the goods sold during a period.