A journal entry which records revenue must include:

Question

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A journal entry recording revenue (such as sales revenue or service revenue) will typically involve a credit to a revenue account. This increases the balance in the revenue account and represents an inflow of economic resources to the business. The corresponding debit entry could vary depending on the transaction, but it may involve a debit to Cash if the revenue was received in cash or a debit to Accounts Receivable if the revenue was earned on credit. There would not typically be a credit or debit to an equity account in this type of transaction.

A Journal Entry Which Records Revenue Must Include