Which of the following journal entries correctly records a transaction where services were provided to a customer on account?
A)Cash xxx
Service revenue
Xxx
B)Unearned revenue xxx
Service revenue
Xxx
C)Accounts receivable xxx
Service revenue
Xxx
D)Service revenue

Question

Which of the following journal entries correctly records a transaction where services were provided to a customer on account?
A)Cash xxx
Service revenue
Xxx
B)Unearned revenue xxx
Service revenue
Xxx
C)Accounts receivable xxx
Service revenue
Xxx
D)Service revenue

Quizplus · Accepted Answer

Services were provided on account, meaning the customer has not yet paid. This means we made a sale on credit, resulting in an increase in Accounts Receivable, and we also earned Service Revenue for providing the service. Therefore, we debit Accounts Receivable and credit Service Revenue.

Which of the Following Journal Entries Correctly Records a Transaction