Jane Richards, CGA, has billed her clients for services performed. She subsequently receives payments from her clients. What entry will she make upon receipt of the payments?
A) Debit Unearned Revenue and credit Service Revenue.
B) Debit Cash and credit Accounts Receivable.
C) Debit Accounts Receivable and credit Service Revenue.
D) Debit Cash and credit Service Revenue.

Question

Quizplus · Accepted Answer

When Jane Richards receives payments from her clients for services she has already billed (and presumably performed), she would debit Cash (to increase her cash balance) and credit Accounts Receivable (to decrease the amount owed by her clients). This reflects the receipt of cash payment from clients for services previously invoiced.

Jane Richards, CGA, Has Billed Her Clients for Services Performed