A business maintains subsidiary accounts for each of its customers.On May 15,the business sells services on account: $2,500 to customer J.Simmons;$4,100 to customer A.Jones;and $1,300 to customer J.Williams.Which journal entry is needed to record this sales transaction?

Question

Quizplus · Accepted Answer

The journal entry should debit Accounts Receivable (as the business has made sales on credit and increased its accounts receivable from customers) and credit Sales Revenue (as the business has earned revenue from selling services). Therefore, the correct journal entry is: Debit Accounts Receivable $7,900; Credit Sales Revenue $7,900. Choice B represents this journal entry.

A Business Maintains Subsidiary Accounts for Each of Its Customers