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3 May, 09:20

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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  1. 3 May, 09:35
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    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
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