Norbert Inc. delivered goods and services during December. Payment is expected during the first week of January. The related adjusting entry should consist of a debit to a(n) account and a credit to a(n) _ account.

By delivering goods expecting payment at a later date, Norbert Inc. is increasing its accounts receivable. This type of profit takes place when goods or services are provided in credit and the payment is set in the future. In the example, according to the Generally Accepted Accounting Principles (GAAP), the accounts receivable must be debited to an asset account and credited to a revenue account.

anthougo anthougo · Answer 2 · 2022-01-27T11:32:38+01:00

The correct adjusting entry consists of a debit to an asset account (Accounts Receivable) and a credit to a Revenue account (Sales and Services Revenue).

When to raise an adjusting entry?

When Norbert Inc. delivered the goods and services on credit in December with the expectation of being paid in January, an asset account and a revenue account are raised.

The cost of goods sold will be debited while the inventory account is credited with the cost of the goods.

Thus, the correct adjusting entry consists of a debit to an asset account and a credit to a Revenue account.

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Norbert Inc. delivered goods and services during December. Payment is expected during the first week of January. The related adjusting entry should consist of a debit to a(n) ____ account and a credit to a(n) _____ account.

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When to raise an adjusting entry?

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Norbert Inc. delivered goods and services during December. Payment is expected during the first week of January. The related adjusting entry should consist of a debit to a(n) account and a credit to a(n) _ account.