Question

Kincaid Company provided consulting services of $2.500 to a customer who paid $1,300 and promised to pay the remainder next month. Which of the following journal entries correctly records this transaction? Cash Accounts receivable Consulting revenue 1,300 1,200 2,500 Cash Accounts payable Consulting revenue 1,300 1. 2001 2,500 1.300 Cash Consulting revenue 1,300 1,300 1,300 Consulting revenue Cash Accounts receivable 1,300 1,200

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and calculation. For detailed answer refer to the supporting sheet.

Answer 3 The correct answer is 5 Cash 5 Account receivable - Consulting revenue 1300 1200 2500 Explanation As kincaid Company provided consulting services of $ 2500, so it will recognize revenue of $ 2500 and credit consulting revenue. And cash has been recived of $ 1300 against it and $1200 is to be received so account receivable will be debited.