Sebastian Belle, CPA, has billed her clients for services performed. She subsequently receives payments from her clients. What entry will Sebastian make upon receipt of the payments?
A) Debit Unearned Service Revenue and credit Service Revenue
B) Debit Cash and credit Accounts Receivable
C) Debit Accounts Receivable and credit Service Revenue
D) Debit Cash and credit Service Revenue

Question

Quizplus · Accepted Answer

When Sebastian receives payments from her clients, she will debit Cash to increase the cash account and credit Accounts Receivable to decrease the amount owed by the clients, reflecting the receipt of payment for previously billed services.

Sebastian Belle, CPA, Has Billed Her Clients for Services Performed