Question

"A​ & D Window Cleaning performed​ $450 of services but has not yet billed customers for the month. If A​ & D fails to record the adjusting​ entry, what is the impact on the financial​ statements?"

Answer 1

Answer and Explanation:

The omitted Entry must be recorded as:

Dr Trade Receivables $450  Balance Sheet Item

Cr                          Revenue $450 Income Statement

This means that omiting this entry in the books of accounts would understate the revenues and the trades reveivables by $450. So this is impact on the financial statements.