Lush Lawns Company 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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Accounts Receivable increased as this represents the amount the customer owes the company for the services rendered. Option A (Accounts Payable) would be applicable if the company owed money to someone, Option B (Supplies) would be applicable if Lush Lawns had purchased supplies to render the service, and Option C (Cash) would be applicable if the customer had paid Lush Lawns immediately.

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