Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 42 - No. 4)
When a company provides services to a customer and receives cash immediately, what is the correct journal entry?
Debit Accounts Receivable, Credit Service Revenue
Debit Service Revenue, Credit Cash
Debit Cash, Credit Accounts Receivable
Debit Cash, Credit Service Revenue
Explanation
The company receives cash (an asset) and recognizes service revenue (revenue).
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