Question

: In late August, a company provided one of its customers with services worth $500; however, the company did not send the customer a bill for those services until early September. What journal entries should the company make in August to denote this delivery of services?

Answer 1

Explanation:

The journal entry is shown below:

Account receivable A/c Dr $500

       To Service revenue A/c $500

(Being the service provided is recorded)

Since the account receivable balance is increased so we debited this account and the service revenue is also increase so we credited this account. Both the accounts are recorded for $500