Q12SE - Horngren'S Financial And Managerial Accounting

Question

Question :At the end of June, Gerber Dental had performed $9,000 of dental services but has not yet billed customers. Record the adjusting entry for accrued revenue.

Step-by-Step Solution

Answer

Answer

Date	Account and Explanation	Debit	Credit
	Accounts Receivable	$9,000
	Service Revenue		$9,000
	To record service revenue earned

Step 1: Explanation of Adjusting Entries

Adjusting entries are the year-end entries used to record accrued revenues and expenses.

Step 2: Explanation of Accrued Revenues

Accrued revenues refer to the earned revenue, but the payment is not received in cash.