A company bills customers for services rendered on account. Which of the following is one part of recording this transaction?
A) Debit Service Revenue
B) Credit Cash
C) Debit Accounts Receivable
D) Credit Unearned Revenue

Question

Quizplus · Accepted Answer

When a company bills customers for services rendered on account, it means the company has provided services but has not yet received payment. Therefore, the company increases its Accounts Receivable (an asset account) to reflect the amount owed by the customer. This is done by debiting Accounts Receivable.

A Company Bills Customers for Services Rendered on Account