is the last day of the month and fiscal year, your manager asks you to create an invoice for $10,000 (debiting Accounts Receivable and Crediting Sales) and send it to a specified customer. Normally invoices are sent to customers when products have been shipped or the service has been finished. You manager tells you that we will be shipping equipment and performing the setup services for this customer next month (as early as next week). You know that by preparing the closing entries tomorrow, the revenue will be included in this year’s fiscal year and then the revenue account will be set to zero for the beginning of the year. How would you respond to your manager? Do you have any suggestions or alternative ways you would recommend to your manager on how to record this?
is the last day of the month and fiscal year, your manager asks you to create an invoice for $10,000 (debiting Accounts Receivable and Crediting Sales) and send it to a specified customer. Normally invoices are sent to customers when products have been shipped or the service has been finished. You manager tells you that we will be shipping equipment and performing the setup services for this customer next month (as early as next week). You know that by preparing the closing entries tomorrow, the revenue will be included in this year’s fiscal year and then the revenue account will be set to zero for the beginning of the year. How would you respond to your manager? Do you have any suggestions or alternative ways you would recommend to your manager on how to record this?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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t is the last day of the month and fiscal year, your manager asks you to create an invoice for $10,000 (debiting
You know that by preparing the closing entries tomorrow, the revenue will be included in this year’s fiscal year and then the revenue account will be set to zero for the beginning of the year.
- How would you respond to your manager? Do you have any suggestions or alternative ways you would recommend to your manager on how to record this?
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