Childers Service Company provides services to customers totaling $2,600, for which it billed the customers. How would the transaction be recorded?

a. Debit service revenue $2,600, credit accounts receivable $2,600

b. Debit accounts receivable $2,600, credit cash $2,600

c. Debit cash $2,600, credit service revenue $2,600

d. Debit accounts receivable $2,600, credit service revenue $2,600

Question

Business

Mara Shaw

5 March, 22:54

Childers Service Company provides services to customers totaling $2,600, for which it billed the customers. How would the transaction be recorded?

a. Debit service revenue $2,600, credit accounts receivable $2,600

b. Debit accounts receivable $2,600, credit cash $2,600

c. Debit cash $2,600, credit service revenue $2,600

d. Debit accounts receivable $2,600, credit service revenue $2,600

+1

Answers (1)

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Griffith · Answer 1

d. Debit accounts receivable $2,600, credit service revenue $2,600

Explanation:

As per the problem, the company has billed the customers for $2,600, but it hasn't received the cash from them.