Sebastian Belle has performed $2,000 of CPA services for a client but has not billed the client as of the end of the accounting period. What adjusting entry must Sebastian make?
A) Debit Cash and credit Unearned Service Revenue
B) Debit Accounts Receivable and credit Unearned Service Revenue
C) Debit Accounts Receivable and credit Service Revenue
D) Debit Unearned Service Revenue and credit Service Revenue

Question

Quizplus · Accepted Answer

Sebastian should debit Accounts Receivable to recognize the amount owed by the client and credit Service Revenue to recognize the revenue earned during the period.

Sebastian Belle Has Performed $2,000 of CPA Services for a Client