D102 Financial Accounting Wgu Already Passed

How is revenue typically recorded with debits and credits? {Ans: As a credit, representing an increase in equity.}On January 1 of Year 1, a company purchased a franchise for $100,000. The franchise is expected to have a 20-year economic useful life. The franchise is assumed to have zero salvage value at the end of its economic useful life. The company uses straight-line amortization. What is needed in the journal entry to record amortization expense on this franchise at the end of Year 1? {Ans: Credit to franchise for $5,000}On January 6, a credit sale was made for $1,000. Terms for the sale were 4/10, n/30. Cash for the sale was collected on January 25. Which debit or credit should be included in the journal entry to record the cash collection on January 25? {Ans: Debit cash for $1,000}For large, publicly traded companies, why is accrual basis accounting preferred over cash basis accounting? {Ans: Accrual basis accounting provides a more accurate picture of a company's economic profitability.}What is the matching principle? {Ans: Expenses are recorded in the same period in which the corresponding revenue is recorded.}On August 1 of Year 1, a company paid $7,200 for