A company uses the cash basis of accounting and records its revenues and expenses when cash is received or paid. However, the company's accounting records show that it has earned ₦50,000 in revenue but has not yet received the cash. What is the correct journal entry to record the revenue?

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Debit Revenue ₦50,000, Credit Accounts Receivable ₦50,000

Post Utme Rhema University 2024 Accounting Question 20

A company uses the cash basis of accounting and records its revenues and expenses when cash is received or paid. However, the company's accounting records show that it has earned ₦50,000 in revenue but has not yet received the cash. What is the correct journal entry to record the revenue?

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