Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

3. Accrual Accounting Concepts

Adjusting Entries: Accrued Revenues

Financial Accounting

3. Accrual Accounting Concepts

Adjusting Entries: Accrued Revenues

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following journal entries records the adjustment for revenue that has been earned but not yet collected at the end of the accounting period?

Debit Service Revenue; Credit Accounts Receivable

Debit Unearned Revenue; Credit Service Revenue

Debit Cash; Credit Unearned Revenue

Debit Accounts Receivable; Credit Service Revenue

Previous problemNext problem

Verified step by step guidance

Understand the concept of accrued revenue: Accrued revenue refers to revenue that has been earned but not yet received in cash or recorded in the accounts. This adjustment ensures that revenue is recognized in the period it is earned, following the accrual basis of accounting.

Identify the accounts involved: Since the revenue has been earned but not yet collected, the accounts affected are 'Accounts Receivable' (an asset account) and 'Service Revenue' (a revenue account).

Determine the impact on each account: Revenue earned increases 'Service Revenue,' which is credited. The amount owed by customers increases 'Accounts Receivable,' which is debited.

Write the journal entry: The adjustment for accrued revenue is recorded as a debit to 'Accounts Receivable' and a credit to 'Service Revenue.' This reflects the earned revenue and the receivable amount.

Review the options provided: Compare the journal entry you determined with the options given in the problem. The correct entry is 'Debit Accounts Receivable; Credit Service Revenue,' as it properly records the adjustment for accrued revenue.