Question

What would the journal entry look like for rental revenue earned on August 9, 20Y5, for $890 that the customers paid for on account?

Answer 1

The journal entry for rental revenue earned on August 9, 20Y5, for $890 that the customers paid on account would be: debit Accounts Receivable $890 and credit Rental Revenue $890.

Step-by-step explanation:

The journal entry for rental revenue earned on August 9, 20Y5, for $890 that the customers paid on account would look like this:

1. Debit: Accounts Receivable $890
2. Credit: Rental Revenue $890

This entry ensures that the revenue earned is recorded on the debit side of the accounts receivable ledger and the credit side of the rental revenue ledger.