Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 25 - No. 20)
If a company receives cash from a customer for services performed, what is the correct journal entry?
Debit Cash, Credit Accounts Receivable
Debit Accounts Receivable, Credit Service Revenue
Debit Cash, Credit Service Revenue
Debit Service Revenue, Credit Cash
Explanation
Cash is debited (increased) and Service Revenue is credited (increased).
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