When a company has performed a service but has not yet received payment, it
A)debits accounts receivable and credits service revenue.
B)debits revenue from services and credits accounts receivable.
C)debits revenue from services and credits accounts payable.
D)makes no entry until the cash is received.

Question

Quizplus · Accepted Answer

When a service is performed but not yet paid for, the company records the transaction by debiting accounts receivable (an asset account) to reflect the amount owed and credits service revenue (a revenue account) to recognize the earned revenue.

When a Company Has Performed a Service but Has Not