Coaster Brothers,Inc.billed a client for services performed on March 12.The customer paid one-half of the amount owed on March 22 and the other one-half on April 24.When should the company record the related Service Revenue?

Question

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Revenues are recorded when earned (the revenue recognition principle).The entry should be dated March 12,which is the date the services were provided to the customer,and would include a debit to Accounts Receivable and a credit to Service Revenue.