Chimney Sweeps provided chimney cleaning services to several clients during the month of February. Chimney's customers have not yet been billed. Chimney's customers owe $2,000 to Chimney. How will Chimney Sweeps record this transaction? O Debit accounts receivable and credit cash O Debit cash and credit services revenue O Debit accounts receivable and credit services revenue

Question

Mitchell

Business

31 July, 15:15

Chimney Sweeps provided chimney cleaning services to several clients during the month of February. Chimney's customers have not yet been billed. Chimney's customers owe $2,000 to Chimney. How will Chimney Sweeps record this transaction? O Debit accounts receivable and credit cash O Debit cash and credit services revenue O Debit accounts receivable and credit services revenue

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Answers (1)

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Cali Page · Answer 1

O Debit accounts receivable and credit services revenue

Explanation:

Services has been performed by Chimney Sweeps and they have not been paid yet. So, the $200 is receivable from customer.

Chimney Sweeps record this transaction by following journal entry:

Debit Credit

Accounts Receivable $2,000

Services Revenue $2,000

So the correct answer is O Debit accounts receivable and credit services revenue.