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

Question

Quizplus · Accepted Answer

When a company performs services for cash, it increases its cash (an asset) and recognizes the revenue earned. This is recorded by debiting cash (to increase it) and crediting service revenue (to increase it).

Which of the Following Entries Records the Billing of Service