Question

When an owner records a credit for $650 for revenue earned but not yet received, the amount of the debit should be

Question 13 options:

$0.

$650.

$975.

$325.

Answer 1

The answer is B $650

Step-by-step explanation:

You ALWAYS record any revenue, in order to make the balance sheet valid. You record revenues before payment and are given cash. Its still considered an asset.

Answer 2

650.

Whenever we credit or debit a transaction, it is ALWAYS in equal amounts. It does not matter whether the revenue is not yet received, as accounting is governed by the accrual concept.