On July 7, 2017, Shireman Enterprises received cash $1,400 for services rendered. The entry to record this transaction will include

Question

Quizplus · Accepted Answer

Shireman Enterprises received cash for services rendered, indicating that it has now received payment for its services. Therefore, the entry should include a debit to Cash, representing an increase in assets. Option A is incorrect because Service Revenue should be credited, not debited, to recognize the revenue earned from providing services. Option B is incorrect because Accounts Receivable is a liability account that represents the amount of money owed to the company from its customers. However, in this case, the company has already received the cash, so there is no longer any amount owed. Option D is incorrect because Accounts Payable is a liability account used to record money owed by the company to its vendors or suppliers.

On July 7, 2017, Shireman Enterprises Received Cash $1,400 for Services