Kincaid Company provided consulting services of $2,500 to a customer who paid $1,300 and promised to pay the remainder next month.Which of the following journal entries correctly records this transaction?

Question

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The company would record an increase in cash (a debit)of $1,300,an increase in accounts receivable (a debit)of $1,200,and an increase in revenue (a credit)of $2,500.

Kincaid Company Provided Consulting Services of $2,500 to a Customer