When Pizza Company delivers pizza to customers and bills its customer accounts,it should record a debit to ______ and a credit to ______:
A) Accounts Payable; Sales Revenue
B) Cash; Sales Revenue
C) Accounts Receivable; Unearned Revenue
D) Accounts Receivable; Sales Revenue

Question

Quizplus · Accepted Answer

When Pizza Company delivers pizza to customers and bills its customer accounts, it implies that the customer has not paid for the pizza yet. Hence, Pizza Company's account will show an increase in Accounts Receivable. Sales Revenue will also increase as the transaction represents the delivery of goods or services to the customer. Therefore, Pizza Company should record a debit to Accounts Receivable and a credit to Sales Revenue.

When Pizza Company Delivers Pizza to Customers and Bills Its