Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 12 - No. 41)
A company provides services for $5,000 on credit. Which journal entry would properly record this transaction?
Debit Cash, Credit Service Revenue for $5,000
Debit Accounts Receivable, Credit Service Revenue for $5,000
Debit Service Revenue, Credit Accounts Receivable for $5,000
Debit Cash, Credit Accounts Receivable for $5,000
Explanation
Services provided on credit means accounts receivable increases, so the credit is to the revenue account and the debit is to accounts receivable.
Comments (0)
