selenna, inc., collects cash from customers in advance and from other customers after the sale. read the…
selenna, inc., collects cash from customers in advance and from other customers after the sale. read the requirement. a. journalize selenna earning service revenue of $20,000 on account and then collecting $15,000 on account. (record debits first, then credits. exclude explanations from any journal entries.) start by recording selenna earning $20,000 of service revenue on account. date accounts debit credit 2024
Answer
Explanation:
Step1: Record service revenue on account
When service revenue is earned on account, we debit Accounts Receivable (an asset account that increases) and credit Service Revenue (a revenue account that increases).
| Date | Accounts | Debit | Credit |
|---|---|---|---|
| 2024 | Accounts Receivable | $20,000 | |
| Service Revenue | $20,000 |
Step2: Record collection on account
When cash is collected on account, we debit Cash (an asset account that increases) and credit Accounts Receivable (an asset account that decreases).
| Date | Accounts | Debit | Credit |
|---|---|---|---|
| 2024 | Cash | $15,000 | |
| Accounts Receivable | $15,000 |
Answer:
For earning service revenue on account:
| Date | Accounts | Debit | Credit |
|---|---|---|---|
| 2024 | Accounts Receivable | $20,000 | |
| Service Revenue | $20,000 |
For collecting on account:
| Date | Accounts | Debit | Credit |
|---|---|---|---|
| 2024 | Cash | $15,000 | |
| Accounts Receivable | $15,000 |