On May 1, a company provided legal services for a new client. The legal fee was $2500 and the client paid, by check, before leaving the office that day. How does this transaction affect the accounting equation?
A)Add $2500 to Cash and add $2500 to Service Revenue.
B)Add $2500 to Cash and add $2500 to Retained Earnings.
C)Add $2500 to Cash and subtract $2500 from Accounts Receivable.
D)Add $2500 to Cash and subtract $2500 from Accounts Payable.

Question

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The Answer of On May 1, a company provided legal services for a new client. The legal fee was $2500 and the client paid, by check, before leaving the office that day. How does this transaction affect the accounting equation?
A)Add $2500 to Cash and add $2500 to Service Revenue.
B)Add $2500 to Cash and add $2500 to Retained Earnings.
C)Add $2500 to Cash and subtract $2500 from Accounts Receivable.
D)Add $2500 to Cash and subtract $2500 from Accounts Payable.

On May 1, a Company Provided Legal Services for a New