Inc. collects cash from customers two​ ways: 1. Accrued Revenue. Some customers pay Browning after Browning has performed service for the customer. During 2017, Browning made sales of $ 54,000 on account and later received cash of $40,000 on account from these customers.   2.Unearned Revenue. A few customers pay Browning in​ advance, and Browning later performs service for the customer. During 2017​, Browning collected $ 7,500  cash in advance and later earned $ 4,500 of this amount. Journalize the following for Browning ​: a. Earning service revenue of $ 54,000 on account and then collecting $ 40,000 on account b. Receiving $ 7,500 in advance and then earning $ 4,500 as service revenue

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Inc. collects cash from customers two​ ways:

1. Accrued Revenue. Some customers pay Browning after Browning has performed service for the customer. During 2017, Browning made sales of $ 54,000 on account and later received cash of $40,000 on account from these customers.

 

2.Unearned Revenue. A few customers pay Browning in​ advance, and Browning later performs service for the customer. During 2017​, Browning collected $ 7,500  cash in advance and later earned $ 4,500 of this amount. Journalize the following for Browning

​:

a. Earning service revenue of $ 54,000 on account and then collecting $ 40,000 on account

b. Receiving $ 7,500 in advance and then earning $ 4,500 as service revenue

b. Journalize Browning receiving $7,500 in advance and then earning $4,500 as service revenue.
Start by recording Browning's cash collections in advance of services being performed.
Journal Entry
Date
Accounts
Debit
Credit
2017
Finally, record the entry to show Browning earning the service revenue.
Journal Entry
Date
Accounts
Debit
Credit
2017
Choose from any list or enter any number in the input fields and then continue to the next question.
Transcribed Image Text:b. Journalize Browning receiving $7,500 in advance and then earning $4,500 as service revenue. Start by recording Browning's cash collections in advance of services being performed. Journal Entry Date Accounts Debit Credit 2017 Finally, record the entry to show Browning earning the service revenue. Journal Entry Date Accounts Debit Credit 2017 Choose from any list or enter any number in the input fields and then continue to the next question.
a. Journalize Browning earning service revenue of $54,000 on account and then collecting $40,000 on account.
Start by recording earning service revenue on account. (Record debits first, then credits. Explanations are not required.)
Journal Entry
Date
Accounts
Debit
Credit
2017
Next, record the entry to show Browning receiving cash for a portion of the revenue previously earned on account.
Journal Entry
Date
Accounts
Debit
Credit
2017
Choose from any list or enter any number in the input fields and then continue to the next question.
Transcribed Image Text:a. Journalize Browning earning service revenue of $54,000 on account and then collecting $40,000 on account. Start by recording earning service revenue on account. (Record debits first, then credits. Explanations are not required.) Journal Entry Date Accounts Debit Credit 2017 Next, record the entry to show Browning receiving cash for a portion of the revenue previously earned on account. Journal Entry Date Accounts Debit Credit 2017 Choose from any list or enter any number in the input fields and then continue to the next question.
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