Should you journalize an entry when you send/receive a sales invoice or journalize it when it's actually paid?

Question

I took accounting last year but I need this because I'm dealing with accounting this year also please help!!
And also when do you use adjusting entries on a worksheet??

Thnx
=)

Answer 1

As a contractor, a invoice is journalize imediate. It reflects on company revenue. The invoice must jive with service and material cost for that invoice in order to claim tax credit. If the invoice gets aged beyond 120 days legal action commences allowing the company to write off as loss. Without legal action the invoice remains as taxable income.

Not sure of the meaning of the 2nd part of question. But it sounds like if a invoice is partially paid and the balance is unreconciled. The entire invoice is gross revenue while the loss is adjusted to unreconciled balances (tax credit)

Answer 2

no