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

brisite, inc., collects cash from customers in advance and from other customers after the sale. read the requirement. 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. read the requirement. 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 collected

When revenue is earned on account, accounts receivable is debited and service revenue is credited. Here, $16,000 of service revenue is earned on account, so Accounts Receivable is debited for $16,000 and Service Revenue is credited for $16,000. 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, cash is debited and accounts receivable is credited. So, Debit Cash $12,000; Credit Accounts Receivable $12,000

Step3: Record cash collection in advance

When cash is received in advance for services, cash is debited and unearned service revenue (a liability) is credited. So, 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, unearned service revenue is debited and service revenue is credited. So, Debit Unearned Service Revenue $1,000; Credit Service Revenue $1,000

Answer:

Date Accounts Debit Credit
2024 Unearned Service Revenue 1,000
2024 Service Revenue 1,000