On the last day of the month,a company receives $8,000 of cash from customers.Of that amount,$1,000 was for services performed and $7,000 represented payments on account.The journal entry to record the $8,000 cash receipt would include a debit to:
A) Accounts Receivable for $7,000, a debit to Service Revenue for $1,000, and a credit for $8,000 to Cash.
B) Cash for $8,000, a credit to Accounts Receivable for $7,000, and a credit to Service Revenue for $1,000.
C) Accounts Receivable for $7,000, a debit to Unearned Revenue for $1,000, and a credit to Cash for $8,000.
D) Cash for $8,000, a debit to Service Revenue for $1,000, and a credit to Accounts Receivable for $7,000.

Question

Quizplus · Accepted Answer

The Answer of On the last day of the month,a company receives $8,000 of cash from customers.Of that amount,$1,000 was for services performed and $7,000 represented payments on account.The journal entry to record the $8,000 cash receipt would include a debit to:
A) Accounts Receivable for $7,000, a debit to Service Revenue for $1,000, and a credit for $8,000 to Cash.
B) Cash for $8,000, a credit to Accounts Receivable for $7,000, and a credit to Service Revenue for $1,000.
C) Accounts Receivable for $7,000, a debit to Unearned Revenue for $1,000, and a credit to Cash for $8,000.
D) Cash for $8,000, a debit to Service Revenue for $1,000, and a credit to Accounts Receivable for $7,000.

On the Last Day of the Month,a Company Receives $8,000