Childers Service Company provides services to customers totaling $3,000, for which it billed the customers. How would the transaction be recorded? A. Debit Accounts Receivable $3,000, credit Cash $3,000. B. Debit Service Revenue $3,000, credit Accounts Receivable $3,000. C. Debit Cash $3,000, credit Service Revenue $3,000. D. Debit Accounts Receivable $3,000, credit Service Revenue $3,000.

Question

Business

Aldo Doyle

11 October, 11:41

Childers Service Company provides services to customers totaling $3,000, for which it billed the customers. How would the transaction be recorded? A. Debit Accounts Receivable $3,000, credit Cash $3,000. B. Debit Service Revenue $3,000, credit Accounts Receivable $3,000. C. Debit Cash $3,000, credit Service Revenue $3,000. D. Debit Accounts Receivable $3,000, credit Service Revenue $3,000.

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Answers (1)

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Zack Valenzuela · Answer 1

D. Debit Accounts Receivable $3,000, credit Service Revenue $3,000

Explanation:

The Children Service Company has provided the services to the customer and has billed the Customer, so the revenue shall be recognised in its accounts and accordingly the following journal entry shall be made in its accounts.

Debt Credit

Accounts Receivable $3,000

Service Revenue $3,000

So the answer is D. Debit Accounts Receivable $3,000, credit Service Revenue $3,000