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NEW QUESTION: 1
A consulting services company is currently working on a business transformation project for your client, which spans multiple years. At the first period close, the consulting services company has recognized revenue and the accounting entry created is:
Dr Unbilled Receivables 40,000
Cr Revenue 40,000
At the end of the period, the client is sent an associated bill. What would be the corresponding invoice accounting entry? (Choose the best answer.)
A. Dr Accounts Receivables 40,000Cr Unbilled Receivables 40,000
B. Dr Accounts Receivables 40,000Cr Revenue 40,000
C. Dr Unearned Revenue 40,000Cr Accounts Receivables 40,000
D. Dr Unearned Revenue 40,000Cr Revenue 40,000
Answer: B

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