Which of the following is the appropriate journal entry if a company performs a service and then bills the customer?
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 then bills the customer, it is creating an account receivable (a promise of payment from the customer). Therefore, the appropriate journal entry would be a debit to Accounts Receivable (to recognize the increase in this asset) and a credit to Service Revenue (to recognize the increase in revenue earned).

Which of the Following Is the Appropriate Journal Entry If