Question

On Saturday, December 31, the company's owner provided ten hours of service to a customer. The company bills $100 per hour for services provided on weekends. Payment has not yet been received. The owner did not stop in the office on Saturday; as such, on December 31, the services were unbilled and unrecorded.

Complete the necessary adjusting entry by selecting the account names and dollar amounts.

Answer 1

Dr Account Receivable 1,000

Cr Service Revenue 1,000

Step-by-step explanation:

Preparation of Journal Entry

Based on the information given we were been told the company's provided 10 hours of service to a customer in which they as well bills the customer the amount of $100 per hour for services they rendered on weekends and secondly we were told that the Payment made has not yet been received by the company and on December 31, the services were also not billed and recorded which means that the adjusting entry will be :

Dec. 31

Dr Account Receivable 1,000

Cr Service Revenue 1,000

(100 per hour x 10 hours of service)