Bryson Services,Inc.performed accounting services for a client in December.A bill was mailed to the client on December 30.The company received a check by mail on January 5.Which of the following accounts should appear on the balance sheet as of December 31 as related to the services performed?
A)Prepaid Expense
B)Accounts Receivable
C)Unearned Revenue
D)None,there is no entry in December.

Question

Quizplus · Accepted Answer

The services were performed in December, so the revenue earned should be recorded as Accounts Receivable on the balance sheet as of December 31. The fact that the bill was not paid until January 5 does not affect the reporting of revenue for the previous month. Prepaid Expense and Unearned Revenue do not apply in this scenario. There is a transaction that should be recorded in December, so D is not the correct answer.