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
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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
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
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