Your calendar year company completes a $6,000 job, which has not been recorded o

Question

Your calendar year company completes a $6,000 job, which has not been recorded or received. If you discover before the books are closed that no adjusting entry was made, your correcting entry will: debit Revenue for $6,000; credit Account Receivable for $6,000 debit cash for $6,000; credit Revenue for $6,000 debit Accounts Receivable for $6,000; credit Revenue for $6,000 not be necessary because an entry is not required until the cash is received debit Cash for $6,000; credit Accounts Receivable for $6,000

Explanation / Answer

Ans. Entry for recording the Job work of $6000 will be as under

Accounts receivable A/c Dr $6000

To Revenue A/c Cr $6000

Entry for receiving the cash from job work of $6000 will be as under

Cash A/c Dr $6000

To Accounts receivable A/c Cr $6000

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