brisite, inc. collects cash from customers in advance and from other customers after the sale. 2024 accounts…

brisite, inc. collects cash from customers in advance and from other customers after the sale. 2024 accounts receivable 16,000 service revenue 16,000 next, record the entry to show brisite collecting $12,000 cash for a portion of the revenue previously earned on account. date accounts debit credit 2024 cash 12,000 accounts receivable 12,000 b. journalize brisite receiving $6,500 in advance and then earning $1,000 as service revenue. start by recording brisites cash collections in advance of services being performed. date accounts debit credit 2024 cash 6,500 unearned service revenue 6,500 finally, record the entry to show brisite earning $1,000 of the service revenue that was collected in advance. date accounts debit credit 2024

brisite, inc. collects cash from customers in advance and from other customers after the sale. 2024 accounts receivable 16,000 service revenue 16,000 next, record the entry to show brisite collecting $12,000 cash for a portion of the revenue previously earned on account. date accounts debit credit 2024 cash 12,000 accounts receivable 12,000 b. journalize brisite receiving $6,500 in advance and then earning $1,000 as service revenue. start by recording brisites cash collections in advance of services being performed. date accounts debit credit 2024 cash 6,500 unearned service revenue 6,500 finally, record the entry to show brisite earning $1,000 of the service revenue that was collected in advance. date accounts debit credit 2024

Answer

Explanation:

Step1: Record revenue - earned but not yet received

When revenue is earned on account, we debit Accounts Receivable and credit Service Revenue. Here, $16,000 of service revenue is earned on account, so the entry is: Debit Accounts Receivable $16,000; Credit Service Revenue $16,000.

Step2: Record cash collection from accounts receivable

When cash is collected for previously - earned revenue on account, we debit Cash and credit Accounts Receivable. Brisite collects $12,000, so the entry is: Debit Cash $12,000; Credit Accounts Receivable $12,000.

Step3: Record cash collected in advance

When cash is collected in advance for services yet to be performed, we debit Cash and credit Unearned Service Revenue. Brisite receives $6,500 in advance, so the entry is: Debit Cash $6,500; Credit Unearned Service Revenue $6,500.

Step4: Record revenue earned from advance collection

When a portion of the unearned service revenue is earned, we debit Unearned Service Revenue and credit Service Revenue. Brisite earns $1,000 of the previously collected advance, so the entry is: Debit Unearned Service Revenue $1,000; Credit Service Revenue $1,000.

Answer:

Date Accounts Debit Credit
2024 Unearned Service Revenue 1000
2024 Service Revenue 1000