We appreciate your visit to What is the correct journal entry for the transaction Received a check for bike rental fees. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!
Answer :
Final answer:
When a bike rental service receives a check for its services, the correct journal entry would be a debit to the Cash account and a credit to the Service Revenue account. The debit reflects an increase in the business's cash assets, while the credit shows that it has earned revenue.
Explanation:
When a business like a bike rental service receives a check for its services, it is making a credit transaction. In bookkeeping, this transaction should be recorded using a journal entry. The correct journal entry for receiving a check for bike rental fees would be a debit to the Cash account and a credit to the Service Revenue account.
This can be represented as follows:
- Debit: Cash account
- Credit: Service Revenue account
The debit to the Cash account reflects the increase in the cash assets of the business, while the credit to the Service Revenue account shows that the business has earned revenues.
Learn more about Journal Entry here:
https://brainly.com/question/33762471
#SPJ11
Thanks for taking the time to read What is the correct journal entry for the transaction Received a check for bike rental fees. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!
- Why do Businesses Exist Why does Starbucks Exist What Service does Starbucks Provide Really what is their product.
- The pattern of numbers below is an arithmetic sequence tex 14 24 34 44 54 ldots tex Which statement describes the recursive function used to..
- Morgan felt the need to streamline Edison Electric What changes did Morgan make.
Rewritten by : Barada
