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Is unbilled service earned revenue? What is the entry?

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If services have been rendered to customers during the current accounting period but no revenue has been recorded and no bill has been sent to the customers, why is an adjusting entry needed? What types of accounts should be debited and credited by this entry?

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Solution Summary

The solution explains whether or not to record unbilled revenue and the impact on generally accepted accounting principles.

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You have just explained accrual accounting in the essence. The reason an entry is required is because that revenue really has been ...

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