Answered

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The following transactions occurred during June: June 1 Purchased two new maintenance carts on account at $750 each. Payment is due in 30 days June 8 Accepted $500 of advance payments from customers for services to be provided next month June 15 Received the utility bill for $300. Payment is due in 30 days June 20 Billed customers $1,500 services provided. Payment is due in 30 days. June 30 Received $500 from customers who were billed earlier Refer to Hesson Properties. What journal entry is required to record the collections on account from customers?a. Accounts Payable 500 Cash 500 b. Cash 500 Accounts Receivable 500 c. Service Revenue 500 Cash 500 d. Accounts Receivable 500 Service Revenue 500

Sagot :

Answer:

b. Cash 500 Accounts Receivable 500

Explanation:

This entry is needed for the settlement of account-based services offered to customers. As a result, we credit Accounts Receivable by $500 for payments obtained from customers that were already billed for those services.

So, Journal entry will be as follows,

       Cash A/c Dr.                                       500

To,  Accounts Receivable A/c                          500

Hence, option b is the correct answer.

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