Browning, Inc., collects cash from customers in advance and from other customers after the sale. Read the requirement
a. Journalize Browning earning service revenue of $15,000 on account and then collecting $10,000 on account. (Record debits first, then credits. Exclude explanations from any jounal entries.)
Start by recording Browning earning $15,000 of service revenue on account.
Journl Entry
Date Accounts Debit Credit
2018
Journalize the followibg transactions for Browning:
a. Accrued revenue. Some customers pay Browning after Browning has performed the service for the customer. During 2018, Browning performed services for $15,000 on account and later received cash of $10,000 on account from these customers.
b. Unearned revenue. A few customers pay Browning in advance, and Browning later performs the service for the customer. During 2018, Browning collected $2,000 cash in advance and later earned $1,500 of this amount.