When Blendtek Co.performs $980 of services on account for a customer,Blendtek will record a journal entry with a debit to:
A)Cash and a credit to Accounts Receivable.
B)Accounts Receivable and a credit to Service Revenue.
C)Service Revenue and a credit to Deferred Revenue.
D)Cash and a credit to Accounts Payable.

Question

Quizplus · Accepted Answer

The company has satisfied its performance obligation and now has the right to collect $980 from its customer;that right is an asset called Accounts Receivable.The journal entry will include a debit to Accounts Receivable and a credit to Services Revenue for $980.