A roofing company collects payment when jobs are
complete. The work for one customer, whose job was bid at
$3,100, has been completed as of December 31, but the
customer has not yet been billed. Assuming adjustments are
only made at year-end, what is the adjusting entry the
company would need to make on December 31, the
calendar year-end?
Select one:
O A. Debit Accounts Receivable, $3,100; credit Roofing
Revenue, $3,100.
B. Debit Cash, $3,100; credit Roofing Revenue, $3,100.
C. Debit Roofing Revenue, $3,100; credit Accounts
Receivable, $3,100.
D. No adjustment is required.
E. Debit Roofing Revenue, $3,100; credit Cash, $3,100.