Author Question: Revs, Inc. collected 5,000 from a customer on May 15 for services to be performed in June. The May ... (Read 77 times)

lracut11 · **on:** Jul 5, 2018

Revs, Inc. collected 5,000 from a customer on May 15 for services to be performed in June. The May 15 journal entry to record this transaction is a debit to ________.

A) Cash of 5,000 and a credit to Revenues of 5,000
B) Cash of 5,000 and a credit to Accounts receivable of 5,000
C) Unearned revenue of 5,000 and a credit to Cash of 5,000
D) Cash of 5,000 and a credit to Unearned revenue of 5,000

Question 2

When the terms of sale are FOB shipping point, the buyer should pay the freight charges.
a. True
b. False

Indicate whether the statement is true or false