Monet Designs provided services to a client on account. The journal entry would require:
A)debit to Cash, credit to Service Revenue.
B)debit to Service Revenue, credit to Accounts Receivable.
C)debit to Accounts Receivable, credit to Service Revenue.
D)debit to Service Revenue, credit to Accounts Receivable

Question

Quizplus · Accepted Answer

Monet Designs provided services on account, meaning they have not yet received cash but have earned revenue. The accounts affected are Accounts Receivable (an asset account that represents the amount owed to Monet Designs by the client) and Service Revenue (a revenue account that represents the company's earning for providing services). As Monet Designs has not yet received cash, there is no need to debit or credit the Cash account. Therefore, the correct journal entry would be a debit to Accounts Receivable (to increase the asset account) and a credit to Service Revenue (to increase the revenue account).

Monet Designs Provided Services to a Client on Account