Performing a service for $500 cash and $700 on account would include a:
A)debit to cash for $1,200.
B)debit to service revenue for $1,200.
C)credit to service revenue for $500.
D)debit to accounts receivable for $700.

Question

Quizplus · Accepted Answer

When a service is performed for cash and on account, cash is debited for the cash portion ($500), and accounts receivable is debited for the on-account portion ($700). Service revenue is credited for the total amount ($1,200).

Performing a Service for $500 Cash and $700 on Account