Question

Childers service company provides services to customers totaling $3,100, for which it billed the customers. how would the transaction be recorded? debit accounts receivable $3,100, credit cash $3,100 debit accounts receivable $3,100, credit service revenue $3,100 debit service revenue $3,100, credit accounts receivable $3,100 debit cash $3,100, credit service revenue $3,100

Answer 1

The given transaction is service provided on account or on credit that means the amount is account receivable. So we shall debit the Accounts Receivable and credit the Service revenue account for the same amount.  

The journal entry for the given transaction shall be as follows:

Accounts Receivable Debit $3,100

Service revenue Credit $3,100

Hence the correct answer is:

Debit accounts receivable $3,100, credit service revenue $3,100