Knowee
Questions
Features
Study Tools

Outback Bull Bars invoices a customer $400 for maintenance services supplied on credit. What is the effect of this transaction on the accounting equation?

Question

Outback Bull Bars invoices a customer $400 for maintenance services supplied on credit. What is the effect of this transaction on the accounting equation?
🧐 Not the exact question you are looking for?Go ask a question

Solution 1

The accounting equation is: Assets = Liabilities + Equity.

When Outback Bull Bars invoices a customer 400formaintenanceservicessuppliedoncredit,itincreasesthecompanysAccountsReceivable(anasset)by400 for maintenance services supplied on credit, it increases the company's Accounts Receivable (an asset) by 400.

At the same time, it also increases the company's Service Revenue (part of Eq Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.

Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  

This problem has been solved

Similar Questions

A company sells merchandise to a customer on credit. The journal entry to record this transaction would include a debit to the Accounts account.

A business transaction can have dual effect on a single accounting element or value.Select one:TrueFalse

Prepare the journal entry on the 18th October for the above transaction if the business uses the accrual basis of accounting system.

ii.            Prepare the journal entry on the 18th October for the above transaction if the business uses the accrual basis of accounting system.

If a business allows a customer to buy on credit, which of the following increases?Group of answer choicesInventoryAccounts PayableDebtAccounts Receivable

1/1

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.