Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 18 - No. 1)
What happens when a company provides services but has not yet billed the customer?
Accounts receivable increases and revenue increases.
Cash increases and revenue increases.
Expenses increase and accounts payable increases.
No journal entry is needed.
Explanation
When a company provides services, it is recognized, and if the customer hasn't paid yet, accounts receivable increases.
Comments (0)
