QUESTION IMAGE
Question
dexter, inc., collects cash from customers in advance and from other customers after the sale. read the requirement. a. journalize dexter earning service revenue of $22,000 on account and then collecting $9,000 on account. (record debits first, then credits. exclude explanations from any journal entries.) start by recording dexter earning $22,000 of service revenue on account. date accounts debit credit 2024
Step1: Record service revenue on - account
When Dexter earns service revenue on account, accounts receivable (an asset) increases and service revenue (a revenue account) increases. Debit accounts receivable and credit service revenue.
| Date | Accounts | Debit | Credit |
|---|---|---|---|
| Service Revenue | $22,000 |
Step2: Record cash collection on - account
When collecting cash on account, cash (an asset) increases and accounts receivable (an asset) decreases. Debit cash and credit accounts receivable.
| Date | Accounts | Debit | Credit |
|---|---|---|---|
| Accounts Receivable | $9,000 |
Snap & solve any problem in the app
Get step-by-step solutions on Sovi AI
Photo-based solutions with guided steps
Explore more problems and detailed explanations
| Date | Accounts | Debit | Credit |
|---|---|---|---|
| Service Revenue | $22,000 | ||
| 2024 | Cash | $9,000 | |
| Accounts Receivable | $9,000 |