Green Lawns Corporation earned $500 for landscaping 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 transaction represents the creation of an accounts receivable, which is the amount owed to the company by the customer for services rendered. The other options do not apply because cash has not been received, supplies have not been purchased, and the company does not owe any payments to a creditor.

Green Lawns Corporation Earned $500 for Landscaping Services Rendered