Question

Lev Pest Control Inc performed $80,000 worth of services in January. As of January 31, $30,000 had been billed to the customer and the remaining $50,000 was unbilled and would remain so until February.

What adjusting journal entry will Lev Pest Control record as of January 31?

DR: Revenue, Accounts Receivable, Accrued Revenue, or Unearned Revenue (Amount: 0, 50,000, 30,000, or 80,000)

CR: Revenue, Unearned Revenue, Accrued Revenue, or Cash (Amount: 80,000, 0, 30,000, or 50,000)

Answer 1

SOLUTION :
	Adjusting Entry for the service perfromed is as below,
		Total Service Performed	$                   80,000
		Billed to Customer - Revenue is recorded	$                   30,000
		Unbilled to Customer - Revenue is not recorded	$                   50,000
	Journal Entries
	Date	Account Title and explanation	Debit	Credit
	January. 31	Account Receivable	$                   30,000
		Accrued Revenue	$                   50,000
		Revenue		$                80,000
		(To Recordh the Revenue)