Question

Accorsi delivered products to Nursing home on March 1, 2018 Accoutn receivable and revenue will be...

Accorsi delivered products to Nursing home on March 1, 2018
Accoutn receivable and revenue will be recorded. Revenue of $2,100
There should have been a debit to account receivable and credit to inventories
No entry recorded for end of march
Accorsi will debit cash fro $2,100 and credit account receivable for $2,100
Business   Accounting   
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Answer #1

The Entry at the time of Supply (march 1) needed

Accounts Recievable Dr 2,100

Sales (Revanue) Cr 2,100

If at the time of supply wrong entry posted like

Accounts Recievable Dr 2,100

Inventory    Cr 2,100

then the adjusting entry required is

Inventory Dr 2,100

Sales (Revenue) Cr 2,100

because Revenue includes profit also so we cannot deduct its from inventory , credit to inventory will record for only the portion of inventory cost incurred to make the revenue (asper matching principle)

when receiving cash from the customer the entry will be

Cash account Dr 2,100

Accounts receivable Cr 2,100

*I used Dr and Cr for Debit and Credit respectively

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