Question

For each of the following transactions, determine if Raymond Corporation has earned revenue during the month of May and, if so, how much it has earned.

Customers paid Raymond $1,500 for work Raymond will perform in June.
Customers purchased $6,000 of inventory for which they have not yet paid.
Raymond performed work for customers and was paid $3,400 in cash.
Customers paid Raymond $2,300 for inventory purchased in April.
Record the journal entries for number 2 above.

Answer 1

Answer and Explanation:

As per the question, the journal entry for number 2 is as follows:

Accounts Receivable $6000

To Sales $6,000

(Being revenue earned is recorded)

Here account receivable is debited as it increased the assets and credited the sales as it increased the revenue

Ye the revenue is earned for $6,000