Childers Service Company provides services to customers totaling $2,600, for which it billed the customers. How would the transaction be recorded?

a. Debit service revenue $2,600, credit accounts receivable $2,600

b. Debit accounts receivable $2,600, credit cash $2,600

c. Debit cash $2,600, credit service revenue $2,600

d. Debit accounts receivable $2,600, credit service revenue $2,600

Question

Kaylee Little

Business

27 June, 02:50

Childers Service Company provides services to customers totaling $2,600, for which it billed the customers. How would the transaction be recorded?

a. Debit service revenue $2,600, credit accounts receivable $2,600

b. Debit accounts receivable $2,600, credit cash $2,600

c. Debit cash $2,600, credit service revenue $2,600

d. Debit accounts receivable $2,600, credit service revenue $2,600

+1

Answers (1)

Know the Answer?

Barkley · Answer 1

d. Debit accounts receivable $2,600, credit service revenue $2,600

Explanation:

As per the problem, the company has billed the customers for $2,600, but it hasn't received the cash from them.