Joel Consulting received $3,000 from a customer for services provided. Joel's general journal entry to record this transaction will be:
A) Debit Cash, credit Accounts Receivable.
B) Debit Accounts Payable, credit Services Revenue.
C) Debit Services Revenue, credit Accounts Receivable.
D) Debit Cash, credit Accounts Payable.
E) Debit Cash, credit Services Revenue.

Question

Quizplus · Accepted Answer

Joel Consulting received $3,000 for services provided, which increases their cash balance. Therefore, cash should be debited. Also, they earned revenue from the services provided, which should be credited to services revenue. Hence, the correct journal entry is Debit Cash, credit Services Revenue.

Joel Consulting Received $3,000 from a Customer for Services Provided