CSI Inc.uses accrual basis accounting.During April,the company recorded sales revenue of $50,000 from sales of goods to customers who promised to pay in May.During May,the company received payment from these customers of $45,000.No other transactions with customers took place during these two months.Which of the following statements about income statement accounts is correct?
A) The Sales Revenue account will have a $45,000 balance at April 30.
B) The Accounts Receivable account has a balance of $5,000 at May 31.
C) The Accounts Payable account has a balance of $5,000 at May 31.
D) The Sales Revenue account will have a $45,000 balance at May 31.

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The Answer of CSI Inc.uses accrual basis accounting.During April,the company recorded sales revenue of $50,000 from sales of goods to customers who promised to pay in May.During May,the company received payment from these customers of $45,000.No other transactions with customers took place during these two months.Which of the following statements about income statement accounts is correct?
A) The Sales Revenue account will have a $45,000 balance at April 30.
B) The Accounts Receivable account has a balance of $5,000 at May 31.
C) The Accounts Payable account has a balance of $5,000 at May 31.
D) The Sales Revenue account will have a $45,000 balance at May 31.

CSI IncUses Accrual Basis Accounting