a-company-using-cash-basis-accounting-has-15000-in-unpaid-invoices-at-the-end-of

Question

A company using cash basis accounting has $15,000 in unpaid invoices at the end of the year. How should this be adjusted for accrual basis accounting?

Accepted Answer

Record $15,000 as accounts receivable and recognize revenue.

Answer

Record $15,000 as a liability and defer revenue recognition.

Answer

Record $15,000 as accounts payable and recognize an expense.

Answer

Ignore the unpaid invoices until cash is received.

A company using cash basis accounting has \$15,000 in unpaid invoices at the end of the year. How should this be adjusted for accrual basis accounting?