Mary Richardo has performed $500 of CPA services for a client but has not billed the client as of the end of the accounting period.What adjusting entry must Mary make?
A)Debit Cash and credit Unearned Service Revenue
B)Debit Accounts Receivable and credit Unearned Service Revenue
C)Debit Accounts Receivable and credit Service Revenue
D)Debit Unearned Service Revenue and credit Service Revenue

Question

Quizplus · Accepted Answer

Mary should debit Accounts Receivable to recognize the amount owed by the client and credit Service Revenue to recognize the revenue earned from the services performed.

Mary Richardo Has Performed $500 of CPA Services for a Client