When a company has performed a service but has not yet received payment, what is the required journal entry to be recorded?
A) Accounts Receivable - Debit; Revenue from Services - Credit
B) Revenue from Services - Debit; Accounts Payable - Credit
C) No entry is required until the cash is received.
D) Revenue from Services - Debit; Accounts Receivable - Credit

Question

Quizplus · Accepted Answer

When a service is performed but not yet paid for, the company records a debit to Accounts Receivable to recognize the amount owed and a credit to Revenue from Services to recognize the earned revenue.

When a Company Has Performed a Service but Has Not