Question

XYZ heating and A/C, Inc., completed a heating repair job on December 30 for $2,500. An invoice was sent, and the bill is due within 30 days of the invoice date. What entry should be made before a financial statement is prepared on December 31?

Answer 1

No entry needs to be made on December 31 as the job was completed on December 30 and no payment has been received yet. The $2,500 should be recorded as accounts receivable on the balance sheet as of December 31.