question 7\non november 30, now power prepared a tabular analysis that showed accounts receivable with a…

question 7\non november 30, now power prepared a tabular analysis that showed accounts receivable with a $2,500 balance and service revenue with a $28,400 balance. on december 31, the accounting clerk billed three customers for a total of $1,500 for services rendered. what amounts will be reported on now powers financial statements after the adjustment is recorded?\na accounts receivable, $1,500; service revenue, $28,400\nb accounts receivable, $4,000; service revenue, $29,900\nc accounts receivable, $1,500; service revenue, $29,900\nd accounts receivable, $4,000; service revenue, $28,400

question 7\non november 30, now power prepared a tabular analysis that showed accounts receivable with a $2,500 balance and service revenue with a $28,400 balance. on december 31, the accounting clerk billed three customers for a total of $1,500 for services rendered. what amounts will be reported on now powers financial statements after the adjustment is recorded?\na accounts receivable, $1,500; service revenue, $28,400\nb accounts receivable, $4,000; service revenue, $29,900\nc accounts receivable, $1,500; service revenue, $29,900\nd accounts receivable, $4,000; service revenue, $28,400

Answer

Explanation:

Step1: Determine Accounts Receivable balance

The initial Accounts Receivable balance is $2,500 and $1,500 of additional services are billed on account. So the new Accounts - Receivable balance is $2,500 + $1,500=$4,000.

Step2: Determine Service Revenue balance

The initial Service Revenue balance is $28,400 and $1,500 of additional services are rendered (billed). So the new Service Revenue balance is $28,400 + $1,500 = $29,900.

Answer:

B. Accounts Receivable, $4,000; Service Revenue, $29,900