A landscaping project was completed on December 31,but the customer has not yet been billed for the agreed-upon fee of $12,000.How would the company record the related adjusting entry?
A)Debit Accounts Receivable for $12,000 and credit Landscape Revenue for $12,000.
B)Debit Cash for $12,000 and credit Landscape Revenue for $12,000.
C)Debit Unearned Revenue for $12,000 and credit Landscape Revenue for $12,000.
D)Debit Cash for $12,000 and credit Unearned Revenue for $12,000.
E)Debit Landscape Revenue for $12,000 and credit Income Summary for $12,000.

Question

Quizplus · Accepted Answer

The company should record the revenue earned but not yet billed by debiting Accounts Receivable and crediting Landscape Revenue.

A Landscaping Project Was Completed on December 31,but the Customer