Question

multiple select question
select all that apply
storybook company provided services to several customers during the month of december. these services have not yet been paid by the customers. storybook should record the following adjusting entry at the end of december:
□ debit cash
□ credit accounts payable
□ debit accounts receivable
□ debit services revenue
□ credit services revenue

Explanation:

Step1: Identify earned unpaid revenue

The company provided services (earned revenue) but has not received cash, so this is an accrued revenue.

Step2: Recognize asset for owed cash

To record the amount customers owe, debit the asset account: $\text{Debit: Accounts Receivable}$

Step3: Recognize earned revenue

To record the revenue earned from services, credit the revenue account: $\text{Credit: Services Revenue}$

Answer:

C. debit accounts receivable
E. credit services revenue