What would be the appropriate entry for the following transaction?
Bill Co.performed $5,200 in consulting services on account.
A)Credit to Cash,debit to Accounts Receivable.
B)Debit to Service Revenue,debit to Cash.
C)Debit to Accounts Receivable,credit to Cash.
D)Debit to Service Revenue,credit to Cash.
E)Debit to Accounts Receivable,credit to Service Revenue.

Question

What would be the appropriate entry for the following transaction? 
Bill Co.performed $5,200 in consulting services on account.
A)Credit to Cash,debit to Accounts Receivable.
B)Debit to Service Revenue,debit to Cash.
C)Debit to Accounts Receivable,credit to Cash.
D)Debit to Service Revenue,credit to Cash.
E)Debit to Accounts Receivable,credit to Service Revenue.

Quizplus · Accepted Answer

The transaction involves performing services on account, which means the company will receive payment later. Therefore, Accounts Receivable is debited to reflect the amount owed to the company, and Service Revenue is credited to recognize the revenue earned.

What Would Be the Appropriate Entry for the Following Transaction