A business performs services for $26,000 and collects cash from the customer.Which of the following accounts will be debited?
A) Cash
B) Accounts Receivable
C) Service Revenue
D) Accounts Payable

Question

Quizplus · Accepted Answer

Cash is the account that will be debited because the business has collected cash from the customer. Accounts Receivable would be debited if the business had not received payment at the time of the service. Service Revenue would be credited to reflect the revenue earned from the service. Accounts Payable would not be affected in this transaction as it does not involve any payment to a supplier or vendor.

A Business Performs Services for $26,000 and Collects Cash from the Customer.Which