On July 7, 2021, Hidden Camera Enterprises performed cash services of $1,700.The entry to record this transaction would include

Question

Quizplus · Accepted Answer

When services are performed and paid for in cash, it results in an increase in cash and an increase in service revenue. Therefore, the appropriate entry to record this transaction would be a debit to Cash for $1,700 and a credit to Service Revenue for $1,700. Answer options A and B are incorrect because they do not include the appropriate debit to Cash. Answer option D is incorrect because it involves recording a credit to Accounts Payable, which is not relevant to this transaction as services were paid for in cash.

On July 7, 2021, Hidden Camera Enterprises Performed Cash Services