Question

Actual revenues during the year should be recorded with a (debit/credit) _____ to the Revenues Control account and a (debit/credit) _____ to either Cash or Accounts Receivable.

Answer 1

Actual revenues are recorded by crediting the Revenues Control account and debiting either Cash or Accounts Receivable, depending on the timing of the cash receipt.

Step-by-step explanation:

The student has asked about the proper accounting entries for recording actual revenues. In accounting, revenues are recorded using the accrual basis of accounting. When actual revenues are recognized, a credit should be made to the Revenues Control account. The offsetting entry, depending on whether cash was received at the time of the sale or will be received later, will be a debit to either Cash or Accounts Receivable.