Childers Service Company provides services to customers totaling $3,000,for which it billed the customers.How would the transaction be recorded?

Question

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Since the services were provided on credit, the transaction would be recorded as a debit to Accounts Receivable (an asset account representing the amount owed by customers) and a credit to Service Revenue (a revenue account representing the income earned from providing services). Option A would only be applicable if the customers paid in cash at the time of service. Option C would be applicable if the customer paid after being billed, but this option does not credit the revenue account for the income earned.

Childers Service Company Provides Services to Customers Totaling $3,000,for Which