Question

What account would travelocity credit when you make a reservation with them? what account would be debited? answer?

Answer 1

When a reservation is made with Travelocity, a liability account such as 'Customer Deposits' is credited because the service is not yet rendered, and a cash account is debited because payment is received. After the service is provided, the liability becomes recognized revenue.

Step-by-step explanation:

When you make a reservation with Travelocity, the account that would typically be credited is a liability account such as 'Customer Deposits' or 'Unearned Revenue.' This is because Travelocity has received payment for a service that has yet to be provided. On the other side of the transaction, the account that would be debited would likely be a cash account because Travelocity has received money from the customer making the reservation.

As the service (travel accommodation) has not yet been completed, the money is considered a liability since it may have to be returned if the service isn’t provided as promised. After the service is rendered, Travelocity would then credit the cash account and debit the liability account, recognizing the revenue earned.

Answer 2

You could make a reservation using Travelocity. Juts go to their site and pick your trip of your choice. When you have completed that, you can select to make a reservation and pay for that. After this, Travelocity would debit their cash account and credit their sales account.