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  • Nov 2, 2009, 08:10 AM
    Micuenta
    Journal entry
    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
  • Nov 2, 2009, 10:54 PM
    rehmanvohra

    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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