Accounting question

[SithSolo1]

I'm taking a basic accounting class and we're doing general journal entries.
I need some help figuring out which accounts to debit/credit.


Made up Ex(From Company A's perspective):
Ok Company A bills customer for $20 in July.
Customer pays Company A for $20 in October.

Ok the first one would be:

Date: July
Debit Accounts Recievable $20
Credit Unearned Fees $20

Now would the 2nd be:

Date: Oct
Debit Unearned Fees $20
Debit Cash $20
Credit Accounts Recievable $20

?

 

[Ns1]

Entry 1

DR A/R 20
CR Sales 20

Entry 2
Dr Cash 20
CR A/R 20


dunno why you'd have unearned revenues there unless it was specifically mentioned in the example

 

[krunchykrome]

Originally posted by: SithSolo1
I'm taking a basic accounting class and we're doing general journal entries.
I need some help figuring out which accounts to debit/credit.


Made up Ex(From Company A's perspective):
Ok Company A bills customer for $20 in July.
Customer pays Company A for $20 in October.

Ok the first one would be:

Date: July
Debit Accounts Recievable $20
Credit Unearned Fees $20

Now would the 2nd be:

Date: Oct
Debit Unearned Fees $20
Debit Cash $20
Credit Accounts Recievable $20

?

wait, when does customer receive goods/service?

 

[SithSolo1]

I assume they receive the goods immediately so I guess unearned fees wasn't right. It wasn't mentioned in the example. I hate this class.

Sales would be the same as fees earned right?

 

[Ns1]

Originally posted by: SithSolo1
I assume they receive the goods immediately so I guess unearned fees wasn't right. It wasn't mentioned in the example. I hate this class.

Sales would be the same as fees earned right?

pretty much

a revenue account is a revenue account...

 

[JS80]

Originally posted by: Ns1
Entry 1

DR A/R 20
CR Sales 20

Entry 2
Dr Cash 20
CR A/R 20


dunno why you'd have unearned revenues there unless it was specifically mentioned in the example

/thread

 

[JS80]

Originally posted by: SithSolo1
I'm taking a basic accounting class and we're doing general journal entries.
I need some help figuring out which accounts to debit/credit.


Made up Ex(From Company A's perspective):
Ok Company A bills customer for $20 in July.
Customer pays Company A for $20 in October.

Ok the first one would be:

Date: July
Debit Accounts Recievable $20
Credit Unearned Fees $20

Now would the 2nd be:

Date: Oct
Debit Unearned Fees $20
Debit Cash $20
Credit Accounts Recievable $20

?

They way you know the bolded is wrong is the debits and credits don't equal. That should be your first check.

 

[MagnusTheBrewer]

After 18 hours of accounting, I learned memorization is your friend and hire someone who likes to do this shit.