A sale on account is recorded as a debit to Service Revenue and a credit to Accounts Receivable.

Name: A sale on account is recorded as a debit to Service Revenue and a credit to Accounts Receivable.
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Question

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A sale on account means that the customer will pay at a later date, so it should be recorded as a debit to Accounts Receivable (an asset account representing the amount the customer owes) and a credit to Service Revenue (a revenue account representing the earnings from the sale).

A Sale on Account Is Recorded as a Debit to Service