On the 15^th of the month,a company receives $8,000 in payments from customers.$1,000 is for services performed on that day and the remaining is payment for services performed in the previous month.The $8,000 cash receipt would be recorded as a:

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The $8,000 cash receipt should be recorded as a debit of $8,000 to Cash, as that is the amount of cash received. The $7,000 of previously performed services should be recorded as a credit to Accounts Receivable, as the company is now receiving payment for those services. The $1,000 for services performed on that day should be recorded as a credit to Service Revenue, as the company is now earning revenue for those services. Therefore, the correct entry is a debit of $8,000 to Cash, a credit of $7,000 to Accounts Receivable, and a credit of $1,000 to Service Revenue, which is option B.

On the 15th of the Month,a Company Receives $8,000 in Payments

On the 15^th of the Month,a Company Receives $8,000 in Payments