A business performed $6,000 of services.Their customer paid $1,000 of the amount owed right away but charged the remaining amount.To record this transaction,the business would:
A) Debit Cash $1,000 and Debit Accounts Receivable $5,000;Credit Fee Income $6,000
B) Debit Accounts Receivable $5,000 and;Credit Fee Income $5,000
C) Debit Cash $1,000;Credit Fee Income $1,000
D) Debit Cash $1,000;Credit Accounts Payable $5,000 and Credit Fee Income $6,000

Question

Quizplus · Accepted Answer

The business would debit Cash for $1,000 to record the amount received, and debit Accounts Receivable for $5,000 to record the amount still owed. The business would then credit Fee Income for $6,000 to record the total amount of services performed.

A Business Performed $6,000 of Services