Final answer:
To record the provision of storage services for cash and on account, two entries are necessary: a debit to Cash and a credit to Service Revenue for $146,100, and a debit to Accounts Receivable with a credit to Service Revenue for $58,200.
Step-by-step explanation:
When recording the providing of storage services for cash and on account, two separate accounting entries must be made. For the cash transaction of $146,100, the entry will be a debit to Cash and a credit to Service Revenue. On the other hand, for services provided on account worth $58,200, Accounts Receivable will be debited and Service Revenue will be credited. Here is how you record these transactions:
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- Debit Cash: $146,100
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- Credit Service Revenue: $146,100
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- Debit Accounts Receivable: $58,200
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- Credit Service Revenue: $58,200
This recording reflects the increase in cash and accounts receivable, showing that the company has earned revenue from its storage services.