Which of the following entries records the billing of service revenue performed on account for $5,400?
A)debit to service revenue and a credit to accounts receivable for $5,400
B)debit to accounts payable and a credit to service revenue for $5,400
C)debit to accounts receivable and a credit to the owner's capital for $5,400
D)debit to accounts receivable and a credit to service revenue for $5,400

Question

Quizplus · Accepted Answer

When billing for services performed on account, the company increases its accounts receivable (an asset) because it is owed money, and it records the revenue earned. Therefore, the correct entry is a debit to accounts receivable and a credit to service revenue.

Which of the Following Entries Records the Billing of Service