When a customer buys services on account,it should be recorded as:

Question

Quizplus · Accepted Answer

When a customer buys services on account, it means they are purchasing services on credit. This transaction should be recorded as a credit to Revenue, as it is an increase in the company's earnings. At the same time, it should be recorded as a debit to Accounts Receivable, as the company now has an outstanding amount owed to them by the customer. This represents an increase in the company's assets. Therefore, option B is the correct answer.

When a Customer Buys Services on Account,it Should Be Recorded