When invoices are sent to customers billing them for services that have been performed, the correct transaction analysis is:
A) Increase Accounts Receivable and increase Service Fees Earned
B) Decrease Accounts Payable and increase Service Fees Earned
C) Decrease Service Fees Earned and decrease Accounts Receivable
D) Increase Cash and increase Service Fees Earned
E) Increase Accounts Receivable and increase Accounts Payable

Question

Quizplus · Accepted Answer

When invoices are sent to customers for services performed, it increases Accounts Receivable because the company is owed money, and it increases Service Fees Earned because the company has earned revenue from the services provided.

When Invoices Are Sent to Customers Billing Them for Services