The entry to record the receipt of $650 on account for services previously rendered and billed would be:
A) $\begin{array} { | c | r | r | }
\hline \text { Accounts Receivable } & 650 & \
\hline \text { Service Revenue } & & 650 \
\hline
\end{array}$
B) $\begin{array} { | c | r | r | }
\hline \text { Service Revenue } & 650 & \
\hline \text { Accounts } & & \
\text { Receivable } & & 650 \
\hline
\end{array}$
C) $\begin{array} { | c | r | r | }
\hline \text { Cash } & 650 & \
\hline \text { Accounts } & & \
\text { Receivable } & & 650 \
\hline
\end{array}$
D) $\begin{array} { | c | r | r | }
\hline \text { Cash } & 650 & \
\hline \text { Accounts Payable } & & 650 \
\hline
\end{array}$

Question

The entry to record the receipt of $650 on account for services previously rendered and billed would be:
A) $\begin{array} { | c | r | r | } 
\hline \text { Accounts Receivable } & 650 & \
\hline \text { Service Revenue } & & 650 \
\hline
\end{array}$
B) $\begin{array} { | c | r | r | } 
\hline \text { Service Revenue } & 650 & \
\hline \text { Accounts } & & \
\text { Receivable } & & 650 \
\hline
\end{array}$
C) $\begin{array} { | c | r | r | } 
\hline \text { Cash } & 650 & \
\hline \text { Accounts } & & \
\text { Receivable } & & 650 \
\hline
\end{array}$
D) $\begin{array} { | c | r | r | } 
\hline \text { Cash } & 650 & \
\hline \text { Accounts Payable } & & 650 \
\hline
\end{array}$

Quizplus · Accepted Answer

When receiving cash on account for services previously rendered and billed, the correct entry increases Cash (an asset) and decreases Accounts Receivable (also an asset), reflecting the receipt of payment and the reduction of the amount owed by the customer.

The Entry to Record the Receipt of $650 on Account Accounts Receivable 650 Service Revenue 650\begin{array} { | c | r | r | } \hline \text { Accounts Receivable } & 650 & \\\hline \text { Service Revenue } & & 650 \\\hline\end{array} Accounts Receivable Service Revenue ​650​650​​

The Entry to Record the Receipt of $650 on Account $\begin{array} { | c | r | r | } \hline \text { Accounts Receivable } & 650 & \\\hline \text { Service Revenue } & & 650 \\\hline\end{array}$