When a company bills a customer for $700 for services performed,the journal entry to record this transaction will include a $700 debit to Services Revenue.

Question

Quizplus · Accepted Answer

The correct journal entry would include a $700 debit to Accounts Receivable (or Cash, if paid immediately) and a $700 credit to Services Revenue, reflecting the increase in assets (or cash) and the increase in revenue, respectively.

When a Company Bills a Customer for $700 for Services