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omlin & Company provides music for special occasions. On January 14, the Smith family hired Tomlin for an upcoming family wedding for an agreed-upon fee of $10,000. The wedding was scheduled for May 23. As part of the agreement, the Smiths paid Tomlin half of the fee at the end of April with the remaining amount due by the end of June. How would Tomlin record the receipt of the final payment in June?

Answer :

Tundexi

Answer:

c. Credit to Account Receivable

Explanation:

Options are: a. Credit to Service Revenue, b. Credit to Cash, c. Credit to Account Receivable, d. Debit to Deferred Revenue

Tomlin should record the receipt as a credit to Accounts Receivable . This is because service was given on May 23 on which revenue was recognized and accounts receivable created. Now when the final receipt of cash is confirmed in June, the accounts receivable be credited.

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