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ABC Co. performed services for Client Kay in December and billed Kay $4,000 with terms of net 30 days.

ABC follows the accrual basis of accounting. In January ABC received the $4, from Kay. In January ABC will debit Cash, since cash was received. What account should ABC credit in the January entry?

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Question added by abdelaziz allam , محاسب اول , شركة كامبردج مصر للاستثمار التعليمي ش.م.م
Date Posted: 2016/02/11
Fawzy Ahmed Salim El-Shabiby
by Fawzy Ahmed Salim El-Shabiby , Accountant , Servtel Information, Security, and Telecommunication Network Limited

Ans:  Credit Kay's account

 

Umair Khalid
by Umair Khalid , Accountant , M I H BUILDING MATERIAL GROUP

Debit     Kay A/c  4,

Credit        To     Accrued Income  4,

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