A business renders services to a customer for $16,000 on account.Which account is debited?

Question

Quizplus · Accepted Answer

When a business renders services on account, it means that the customer has not paid yet and the business expects to receive payment later. Therefore, the account that is debited in this transaction is the Accounts Receivable account, which represents the amount owed to the business by the customer. Choice A (Cash) is not correct because no cash is exchanged. Choice C (Service revenue) is the account that will be credited, as it represents the income earned from providing the service. Choice D (Accounts payable) is not correct because accounts payable relate to amounts the business owes to its suppliers, not to amounts owed by customers.

A Business Renders Services to a Customer for $16,000 on Account.Which