On November 10, JumpStart provides $2,250 in services to clients. At the time of service, the clients paid $740 in cash and put the balance on account. a. Journalize this event. If an amount box does not require an entry, leave it blank. Nov. 10 Cash Accounts Receivable Fees Earned 740 Accounts Receivable 1,510 b. On November 20, JumpStart's clients paid an additional $580 on their accounts due. Journalize this event. If an amount box does not require an entry, leave it blank. Nov. 20 Cash 2,250 580 580 c. Compute the accounts receivable balance on November 30. 930

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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### Journalizing Transactions and Computing Accounts Receivable

On November 10, JumpStart provides $2,250 in services to clients. At the time of service, the clients paid $740 in cash and put the balance on account.

#### a. Journalize this event. 
If an amount box does not require an entry, leave it blank.

- **Date:** Nov. 10
  - **Cash:** $740
  - **Accounts Receivable:** $1,510
  - **Fees Earned:** $2,250

#### b. On November 20, JumpStart's clients paid an additional $580 on their accounts due. Journalize this event.
If an amount box does not require an entry, leave it blank.

- **Date:** Nov. 20
  - **Cash:** $580
  - **Accounts Receivable:** $580

#### c. Compute the accounts receivable balance on November 30.

- **Accounts Receivable Balance:** $930

### Explanation:
- **Journalizing** involves recording business transactions in a journal. It helps in tracking how and when money is received and spent.
- **Accounts Receivable** represents the amount of money owed to a company by its clients for services provided on credit.
- **Fees Earned** is a revenue account that represents the income a business generates from rendering services.
Transcribed Image Text:### Journalizing Transactions and Computing Accounts Receivable On November 10, JumpStart provides $2,250 in services to clients. At the time of service, the clients paid $740 in cash and put the balance on account. #### a. Journalize this event. If an amount box does not require an entry, leave it blank. - **Date:** Nov. 10 - **Cash:** $740 - **Accounts Receivable:** $1,510 - **Fees Earned:** $2,250 #### b. On November 20, JumpStart's clients paid an additional $580 on their accounts due. Journalize this event. If an amount box does not require an entry, leave it blank. - **Date:** Nov. 20 - **Cash:** $580 - **Accounts Receivable:** $580 #### c. Compute the accounts receivable balance on November 30. - **Accounts Receivable Balance:** $930 ### Explanation: - **Journalizing** involves recording business transactions in a journal. It helps in tracking how and when money is received and spent. - **Accounts Receivable** represents the amount of money owed to a company by its clients for services provided on credit. - **Fees Earned** is a revenue account that represents the income a business generates from rendering services.
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