Which of the following is the appropriate journal entry if a company performs a service and then bills the customer?
A)Debit to Cash,Debit to Revenue
B)Debit to Cash,Credit to Revenue
C)Debit to Accounts Receivable,Credit to Cash
D)Debit to Revenue,Credit to Accounts Receivable
E)Debit to Accounts Receivable,Credit to Revenue

Question

Quizplus · Accepted Answer

When a company performs a service and then bills the customer, it is not immediately collecting cash, so there should not be a debit to cash. Instead, the company should debit accounts receivable (as the customer owes the company money) and credit revenue (as the company has earned revenue from the service provided). Therefore, the appropriate journal entry is Debit to Accounts Receivable, Credit to Revenue.

Which of the Following Is the Appropriate Journal Entry If