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Micuenta
Nov 2, 2009, 08:10 AM
I would like to know if I enter this transaction correctly: Revenues earned during the month included $6,400 cash and $4,300 on account.

Is this correct:

Cash 6,400
Account Receivable 4,300
Capital 10,700

rehmanvohra
Nov 2, 2009, 10:54 PM
No, the credit should be to revenues earned. You will have incurred expenses to generate that revenue which must be matched to obtain the net income