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Multiple Choice questions about recording revenue

11. Altoona Plumbing recorded its monthly service revenue reflecting both cash sales and sales on account. Which of the following entries properly records this transaction?
a. Debit: Accounts Receivable; Credit: Service Revenue
b. Debit: Service Revenue; Credit: Accounts Receivable, Cash
c. Debit: Accounts Receivable, Cash; Credit: Service Revenue
d. Debit: Cash; Credit: Accounts Receivable

12. Josephine Marlow, M.D. just recorded her billing to clients for services rendered. Which of the following entries properly records this transaction?
a. Debit: Accounts Receivable; Credit: Fees Earned
b. Debit: Accounts Receivable; Credit: Cash
c. Debit: Fees Earned; Credit: Accounts Receivable
d. Debit: Cash; Credit: Fees Earned

13. Josephine Marlow, M.D. recorded the collection of cash from her cash customers. Which of the following entries properly records this transaction?
a. Debit: Fees Earned; Credit: Cash
b. Debit: Fees Earned; Credit: Accounts Receivable
c. Debit: Cash; Credit: Fees Earned
d. Debit: Accounts Receivable; Credit: Fees Earned

14. Josephine Marlow, M.D., a sole proprietor, collected cash from customers for services performed and billed previously. Which of the following entries properly records this transaction?
a. Debit: Fees Earned; Credit: Cash
b. Debit: Fees Earned; Credit: Accounts Receivable
c. Debit: Cash; Credit: Accounts Receivable
d. Debit: Accounts Receivable; Credit: Fees Earned

15. Ronald's Appliance Shop purchased Office Supplies for $1,000 on account. After inspecting the purchase, $200 of the goods was found to be defective and returned. Which of the following entries properly records the return of these goods?
a. Debit: Cash, $200; Credit: Office Supplies, $200
b. Debit: Cash, $800; Credit: Office Supplies, $800
c. Debit: Accounts Payable, $200; Credit: Office Supplies, $200
d. Debit: Accounts Payable, $800; Credit: Office Supplies, $800

Solution Preview

11. Altoona Plumbing recorded its monthly service revenue reflecting both cash sales and sales on account. Which of the following entries properly records this transaction?
a. Debit: Accounts Receivable; Credit: Service Revenue
b. Debit: Service Revenue; Credit: Accounts Receivable, Cash
c. Debit: Accounts Receivable, Cash; Credit: Service Revenue
d. Debit: Cash; Credit: Accounts Receivable

Since there are sales both on cash and account, the debit would be to cash and accounts receivable and credit would be to service revenue.
Option c is the correct choice

12. Josephine Marlow, M.D. just recorded her billing to clients for services rendered. Which of the ...

Solution Summary

3 multiple choice questions are answered with explanation.

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