Question

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

Answer 1

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

Step-by-step explanation:

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