An adjusting entry was made on the last day of the previous fiscal year debiting Accounts Receivable and crediting Service Revenue.If a reversing entry has been made,then at the time of cash collection
A)the accountant needs to find out how much of the cash collection applies to the current period and how much applies to the previous period.
B)the accountant will debit Accounts Receivable and credit Service Revenue.
C)the accountant will debit Cash and credit Service Revenue.
D)the accountant will debit Service Revenue and credit Cash.

Question

Quizplus · Accepted Answer

A reversing entry would have debited Service Revenue and credited Accounts Receivable at the beginning of the current period. Therefore, when cash is collected, the accountant will debit Cash and credit Service Revenue.

An Adjusting Entry Was Made on the Last Day of the Previous