Which of the following is the appropriate journal entry if a company performs a service and is paid immediately?
A)Debit to Cash,debit to Service Revenue.
B)Debit to Cash,credit to Service Revenue.
C)Debit to Accounts Receivable,credit to Cash.
D)Debit to Service Revenue,credit to Accounts Receivable.
E)Debit to Accounts Receivable,credit to Service Revenue.

Question

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When a company performs a service and receives payment immediately, it increases its cash account (debit) and recognizes revenue earned from the service provided (credit to Service Revenue). Therefore, the appropriate journal entry would be a debit to Cash and a credit to Service Revenue. Option A is incorrect because it does not recognize revenue earned. Option C is incorrect because it records the transaction as if the company received payment at a later time. Option D is incorrect because it records the transaction as if the company extended credit to the customer. Option E is incorrect because it records the transaction as if the company received payment at a later time and extended credit to the customer.

Which of the Following Is the Appropriate Journal Entry If