Lush Lawns earned $1,000 for lawn mowing services rendered. The customer promised to pay at a later time. Which of the following accounts increased as a result of this transaction?

Question

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The account that increased as a result of this transaction is Accounts Receivable, as the customer promised to pay at a later time. Accounts Payable would increase if Lush Lawns had incurred an expense but hadn't paid for it yet. Supplies and Cash would not increase in this scenario.

Lush Lawns Earned $1,000 for Lawn Mowing Services Rendered