Author Question: On October 1, Tim's Ware accepted a 500 advance payment from a customer and recorded a debit to Cash ... (Read 65 times)

brutforce · **on:** Jul 5, 2018

On October 1, Tim's Ware accepted a 500 advance payment from a customer and recorded a debit to Cash and a credit to Unearned revenue. On October 10, Tim's Ware delivered the merchandise to the customer, but made no additional journal entry.

Before Tim's Ware prepares financial statements, the company must ________.
A) do nothing. The cash receipt was properly recorded when the advance payment was received from the customer
B) prepare a closing entry to reduce the balance in Unearned revenue to zero
C) record another journal entry that debits Cash and credits Sales
D) prepare an adjusting entry that debits Unearned revenue and credits Sales

Question 2

Which of the following is the key attribute?
a. Client
b. client number
c. client name
d. client street address