A company provided $12,000 of consulting services and was immediately paid in cash by the customer.Identify the journal entry below that properly records this transaction.

Question

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The journal entry for this transaction is a debit to Cash and a credit to Service Revenue. Option B shows this correctly with Cash being debited for $12,000 and Service Revenue being credited for the same amount. Options A, C, D, and E do not have the correct accounts or amounts.

A Company Provided $12,000 of Consulting Services and Was Immediately