is this correct?I wasnt sure if I should put accounts receivable under assets or

Question

is this correct?I wasnt sure if I should put accounts receivable under assets or keep it as inventory

Wise Guys Consulting issues an invoice for $9,000 to one of their clients for services provided. The terms of the invoice call for payment 30 days after the invoice date. What would be the impact at the date the services are completed and invoiced? ACCOUNTS ACCOUNTS CASH AND CASH EQUIVALENTS REVENUE RECEIVABLE ASSETS LIABILITIES OWNERS' EQUITY INVENTORY COST OF GOODS SOLD DEBITCREDIT DEBIT CREDIT DATE $9,000 3 07/01/14 $9,000 ADD TRANSACTION ADD TRANSACTION

Explanation / Answer

As per question - I think it asks from an accounting point of view

so as per the accounting point of view the journal entry would be of the given transaction is as follows -

Accounts receivable A/c Dr. 9000

To Revenue A/c 9000

Cost of goods sold and inventory would have come in seen when we are looking this transaction as per manufacturing accounting point of view which is used for internal purpose only, then the journal entry of the same would be as follows -

Goods in process inventory A/c Dr.

To Raw material inventory A/c

above entry will happen when applying the raw material to make finished goods.

and when sell finished goods the following journalPleas entry has to be done -

Cost of goods sold A/c Dr. 9000

Finished goods A/c 9000

Please comment in case of any confusion.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.