HVAC Service The following transactions occurred during November:
.
-Refer to HVAC Service.The journal entry to record the bills sent to clients will include a debit of $12,000 to

Question

HVAC Service The following transactions occurred during November:
. 
-Refer to HVAC Service.The journal entry to record the bills sent to clients will include a debit of $12,000 to

Quizplus · Accepted Answer

The bills sent to clients represent amounts owed to the company, which is recorded as Accounts Receivable. Debiting Accounts Receivable will increase the balance of this asset account, reflecting the increased amount owed to the company by its clients. A debit to Service Revenue or Retained Earnings would not be appropriate as these accounts represent revenue earned or profit retained, respectively, not amounts owed. A debit to Cash would only occur if the bills were paid immediately upon receipt, which is unlikely.

HVAC Service the Following Transactions Occurred During November