When you rendered services on account what accound do you debit?
The major services offered by wholesalers to the producers of goods and services are given as below: (i) Facilitating large scale production: Wholesalers collect small orders… from number of retailers and pass on the pool of such orders to manufacturers and make purchases in bulk quantities. This enables the producers to undertake production on a large scale and take advantage of the economies of scale. (ii) Bearing risk: The wholesale merchants deal in goods in their own name, take delivery of the goods and keep the goods purchased in large lots in their warehouses. In the process they bear lots of risks such as the risk of fall in prices, theft, pilferage, spoilage, fire, etc. To that extent, they relieve the manufacturers from bearing these risks. (iii) Financial assistance: The wholesalers provide financial assistance to the manufacturers in the sense that they generally make cash payment for the goods purchased by them. To that extent, the manufacturers need not block their capital in the stocks. Sometimes they also advance money to the producers for bulk orders placed by them. (iv) Expert advice: As the wholesalers are in direct contact with the retailers, they are in a position to advice the manufacturers about various aspects including customer's tastes and preferences, market conditions, competitive activities and the features preferred by the buyers. They serve as an important source of market information on these and related aspects. (v) Help in the marketing function: The wholesalers take care of the distribution of goods to a number of retailers who, in turn, sell to large number of customers spread over a large geographical area. This relieves the manufacturers of many of the marketing activities and enable them to concentrate on the production activity. (vi) Facilitate continuity: The wholesalers facilitate continuity of production activity throughout the year by purchasing the goods as and when these are produced. (vii) Storage: Wholesalers take delivery of goods when these are produced in factory and keep them in their godowns/warehouses. This reduces the burden of manufacturers of providing for storage facilities for the finished products.
How does receiving a bill to be paid next month for services rendered affect the accounting equation?
assets increase; liabilities increase
You need to sue in court. The court depends on the amount of the loan..
In my opinion, this question is wrong. . DR Operating Expense . CR Accounts Payable
because you received cash, thus , the asset account increases: DR cash. This amount receiced and dercresed in fee erned (money paid for service) -> Cr Fee earned
[Debit] Cash account [Credit] Services revenue
Rendering services on account increases accounts receivable, as well as equity (retained earnings) For example, a company has provided cleaning services for an amount of $200…; the customer is allowed a three week credit assets = liabilities + equity accounts receivable (assets): increases with +200 retained earnings (equity): increases with + 200 +200 = +200
When a company provides a service and allows the customer to pay in 30 days which account is to be debited?
I would need more information to answer this question. What is the reporting unit (e.g., a for-profit corporation, a non-profit, a governmental entity). Are the services charg…ed or free of charge?
Depend on who perform the services. 1.if it is do by the business is debt becos he will be paid 4 it and money comes. 2.credit if the pays other person 4 the service
'Rendering service' simply means helping, so your question is 'How can you help others? The answer, of course, depends on the situation, what they needm and what you can do.
[Debit] Accounts Receivable 1250 . [Credit] Services sales 1250
The customer's, once they pay the invoice for the services rendered.
The debit side would be money that you owed and paid out for a service. They credit side is money that was paid to you by someone that owed you for services or products.
cash assets increase Equity increases as sales revenue increases and net incomeincreases. No effect on Liabilities and Expenses