D.Debit Inc.has performed $700 of accounting services for a client but has not yet billed the client at the end of the accounting period.What adjusting entry must D.Debit prepare?
A)debit Cash and credit Deferred Revenue
B)debit Accounts Receivable and credit Deferred Revenue
C)debit Accounts Receivable and credit Service Revenue
D)debit Deferred Revenue and credit Service Revenue

Question

Quizplus · Accepted Answer

The correct adjusting entry is to debit Accounts Receivable and credit Service Revenue. This records the revenue earned from the accounting services provided (even though not yet billed) and recognizes the amount owed by the client as an account receivable.

DDebit Inc