Myla Road Company provides tour guide services. On October 10, the company received an advance payment for $12,000 for tours to be provided later. On October 31, $10,000 of the services were provided. On November 12, the remaining services were provided. What journal entry should be made on October 107 A debit Deferred service revenue, $12,000; credit Service revenue, $12,000. debit Revenue, $10,000; credit Deferred service revenue, $10,000. C debit Cash, S12,000; credit Deferred service revenue, $12,000. debit cash, $12,000; credit service revenue, $12,000. none of the above
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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