Styleson Inc.performed cleaning services for its customers for cash.These transactions would be recorded as:
A)Debit Service Revenue,credit Cash.
B)Debit Cash,credit Service Revenue.
C)Debit Cash,credit Accounts Receivable.

Question

Quizplus · Accepted Answer

When Styleson Inc. performs cleaning services for cash, it increases its Cash account (an asset) and recognizes the revenue earned from the services. This is correctly recorded by debiting Cash (to increase it) and crediting Service Revenue (to increase revenue).