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Brice has a contract with the local boarding school where he cuts the hair of the students as required. The school counts up how many haircuts have been provided during the month and pays Brice the cost of the haircuts. The payment is usually received one week into the following month. During June 20X1 Brice has provided 8 haircuts to students, the cost of each haircut is $25. Brice expects to receive the funds on 5/7/X1. The boarding school is not treated as an account receivable.
On the template below:
Question I. need a accrual entry for the income from haircuts as at 30/6/X1.
Question II. need the reversing entry that would be processed on 1/7/X1.
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