A company provided $12,000 of consulting services on account. The customer promises payment in 30 days. Identify the journal entry below that properly records this transaction.
A) $\begin{array}{|l|r|r|}
\hline \text { Accounts Payable } & 12,000 & \
\hline \text { Cash } & & 12,000 \
\hline
\end{array}$
B) $\begin{array}{|l|r|r|}
\hline \text { Cash } & 12,000 & \
\hline \text { Consulting Services Revenue } & & 12,000 \
\hline
\end{array}$
C) $\begin{array}{|l|r|r|}
\hline \text { Consulting Services Revenue } & 12,000 & \
\hline \text { Cash } & & 12,000 \
\hline
\end{array}$
D) $\begin{array}{|l|r|l|}
\hline \text { Accounts Payable } & 12,000 \
\hline \text { Consulting Services Revenue } && 12,000 \
\hline
\end{array}$
E) $\begin{array}{|l|r|l|}
\hline \text { Accounts Receivable } & 12,000 & \
\hline \text { Consulting Services Revenue } & & 12,000 \
\hline
\end{array}$

Question

Quizplus · Accepted Answer

The correct journal entry records an increase in Accounts Receivable (debit) and an increase in Consulting Services Revenue (credit) since the service was provided on account.

A Company Provided $12,000 of Consulting Services on Account Accounts Payable 12,000 Cash 12,000\begin{array}{|l|r|r|}\hline \text { Accounts Payable } & 12,000 & \\\hline \text { Cash } & & 12,000 \\\hline\end{array} Accounts Payable Cash ​12,000​12,000​​

A Company Provided $12,000 of Consulting Services on Account $\begin{array}{|l|r|r|}\hline \text { Accounts Payable } & 12,000 & \\\hline \text { Cash } & & 12,000 \\\hline\end{array}$