When a company bills a customer for $600 for services rendered, the journal entry to record this transaction will include a $600 debit to Services Revenue.

Question

Quizplus · Accepted Answer

The correct journal entry would include a $600 debit to Accounts Receivable (or Cash, if paid immediately) and a $600 credit to Services Revenue, reflecting the increase in assets (or cash) and the increase in revenue, respectively.

When a Company Bills a Customer for $600 for Services