This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: they would debit cash for the $220 and credit deferred revenue for $220. When the reservation is used, they would debit deferred revenue and credit revenue for the $220. On the vending machine (this would also be an adjustment required for accrual basis accounting), you would assume that there would be 13 weeks in each quarter. You would have to accrue an amount at the end of each month until it is paid quarterly. For example, for the month ended January 31, 20XX, you'd take $720 times the four weeks in January which equals $2,880. Ritz is entitled to 30% or $864. At the end of January, they would debit Vending machine receivable (or some account to that affect) and credit other revenue for the $864. This same type entry would be made each month until it is finally received. Then, you would debit cash and credit the receivable....
View Full Document
This note was uploaded on 10/17/2011 for the course ACC 225 acc 225 taught by Professor Unknown during the Spring '10 term at University of Phoenix.
- Spring '10