dexter, inc., collects cash from customers in advance and from other customers after the sale. read the…
dexter, inc., collects cash from customers in advance and from other customers after the sale. read the requirement. a. journalize dexter earning service revenue of $22,000 on account and then collecting $9,000 on account. (record debits first, then credits. exclude explanations from any journal entries.) start by recording dexter earning $22,000 of service revenue on account. date accounts debit credit 2024
Answer
Explanation:
Step1: Record service revenue on - account
When Dexter earns service revenue on account, accounts receivable (an asset) increases and service revenue (a revenue account) increases. Debit accounts receivable and credit service revenue.
| Date | Accounts | Debit | Credit |
|---|---|---|---|
| 2024 | Accounts Receivable | $22,000 | |
| Service Revenue | $22,000 |
Step2: Record cash collection on - account
When collecting cash on account, cash (an asset) increases and accounts receivable (an asset) decreases. Debit cash and credit accounts receivable.
| Date | Accounts | Debit | Credit |
|---|---|---|---|
| 2024 | Cash | $9,000 | |
| Accounts Receivable | $9,000 |
Answer:
| Date | Accounts | Debit | Credit |
|---|---|---|---|
| 2024 | Accounts Receivable | $22,000 | |
| Service Revenue | $22,000 | ||
| 2024 | Cash | $9,000 | |
| Accounts Receivable | $9,000 |