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 Revenue,Debit to Cash
C)Debit to Accounts Receivable,Credit to Cash
D)Debit to Revenue,Credit to Cash
E)Debit to Accounts Receivable,Credit to Revenue

Question

Quizplus · Accepted Answer

The transaction involves performing services on account, meaning the company has earned revenue but has not yet received cash. Therefore, Accounts Receivable is debited to reflect the amount owed by the client, and Revenue is credited to recognize the income earned.

What Would Be the Appropriate Entry for the Following Transaction