Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 24 - No. 17)

A business provides services to a customer on account. How should this transaction be recorded?

Debit Cash and Credit Service Revenue

Debit Accounts Receivable and Credit Service Revenue

Debit Service Revenue and Credit Accounts Receivable

Debit Cash and Credit Accounts Payable

When providing service on account, accounts receivable increases, while service revenue also increases.