Jeremy Consulting received $3,000 from a customer for services provided.Jeremy's general journal entry to record this transaction will be:
A)Debit Services Revenue,credit Accounts Receivable.
B)Debit Cash,credit Accounts Payable.
C)Debit Cash,credit Accounts Receivable.
D)Debit Cash,credit Services Revenue.
E)Debit Accounts Payable,credit Services Revenue.

Question

Quizplus · Accepted Answer

When a company receives cash from a customer for services provided, it increases its Cash account (an asset) and increases its Services Revenue account (reflecting the income earned). Therefore, the correct journal entry is to debit Cash (to record the increase in cash) and credit Services Revenue (to record the increase in income).

Jeremy Consulting Received $3,000 from a Customer for Services Provided