A landscaping project was completed during December and the accrued revenue of $15,000 was recorded in an adjusting entry dated December 31,2014.A check in this amount was received from the customer on January 20,2015.How would the company record this receipt of cash?
A)Debit Cash for $15,000 and credit Accounts Receivable for $15,000.
B)Debit Cash for $15,000 and credit Landscape Revenue for $15,000.
C)Debit Unearned Revenue for $15,000 and credit Landscape Revenue for $15,000.
D)Debit Cash for $15,000 and credit Unearned Revenue for $15,000.
E)Debit Landscape Revenue for $15,000 and credit Income Summary for $15,000.

Question

Quizplus · Accepted Answer

The company would debit Cash to increase it and credit Accounts Receivable to decrease it, as the revenue was already accrued in December.

A Landscaping Project Was Completed During December and the Accrued