Genie performs service on account, which means that Genie lets some customers pay later. Genie earns revenue but doesn't recieve the cash immediately. In transaction 5, Genie cleans a fleet of UPS delievery truck, and PPS promises to pay Genie $3000 within one month. This promise is an account recievable an asset of Genie Car Wash. The transaction reords follows: Its performing the service that earns the revenue not collection the cash. Therefore, Genie records revenue when it performs the service regardless of whether Genie recieves cash now or later
How does it impacts the accounting equation. Make sure to identify the account impacted. Why is it important to record your selected transaction?