One of the companies for which you provide accounting services offers office cleaning services and has 10 customers. Cleaning services are provided in the evenings, Sunday through Thursday, at a rate of $30 per day. Billing is done every Friday. During the month, revenue is recorded when billing is done.
Assume that the month of May ends on a Tuesday. Therefore, including the last day of the month, revenue has been earned for (1,2,3,4,5) days in May that has not yet been recorded. An adjusting entry must be recorded that:
A. Increases an asset account and increases a revenue account. B. Increases a liability account and increases an expense account. C. Decreases an asset account and increases an expense account. D. Decreases a liability account and increases a revenue account.
Lastly, Record the adjusting entry. If an amount box does not require an entry leave it blank or enter "0".