Sebastian Belle has performed $2,000 of CPA services for a client but has not billed the client as of the end of the accounting period.What adjusting entry should Sebastian make?

Question

Quizplus · Accepted Answer

Sebastian Belle should debit Accounts Receivable to recognize the amount owed by the client for services rendered and credit Service Revenue to record the earned revenue that has not yet been billed. This adjusts the accounts to accurately reflect the earned revenue and the corresponding receivable.

Sebastian Belle Has Performed $2,000 of CPA Services for a Client