Home » Oracle » 1z0-511 » What are the accounting entries at the end of May?
A company generates revenue at period end, but bills monthly in arrears. The first project revenue is due to be recognized at the end of May and the first invoice sent to the customer in June. What are the accounting entries at the end of May?
A. Debit: Cost of Goods SoldCredit: Unbilled Receivables
B. Debit: BankCredit: Revenue
C. Debit: Unearned RevenueCredit: Revenue
D. Debit: RevenueCredit: Accounts PayableLiability Account
E. Debit:UnbilledReceivablesCredit: Revenue
Correct Answer: E
Explanation/Reference:
Explanation:
Revenue
Once revenue is created, Oracle Projects runs AutoAccounting to determine the appropriate default accounts. AutoAccounting selects all of the AutoAccounting parameters for each item or event, determines the account coding, validates the account coding against the general ledger, and updates each revenue distribution line with the appropriate default account.
AccountDebitCredit
Unbilled Receivables and/or Unearned Revenue200.00
Revenue200.00
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