Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 24 - No. 2)

If a business receives cash from a customer for services already performed, what accounts are affected?

Debit Cash, Credit Accounts Receivable

Debit Accounts Receivable, Credit Service Revenue

Debit Cash, Credit Service Revenue

Debit Service Revenue, Credit Cash

Receiving cash increases cash (debit) and also increases revenue (credit).