Final answer:
The correct journal entry for a company that provides a service on account is a debit to Accounts Receivable and a credit to Sales Revenue.
Step-by-step explanation:
The correct entry to record the sale when a company provides $1,000 of service to a customer on account with payment terms of 2/10, n/30 includes a debit to Accounts Receivable and a credit to Sales Revenue.
When a company provides $1,000 of service to a customer on account with payment terms of 2/10, n/30, the correct accounting entry to record the sale includes a debit to Accounts Receivable and a credit to Sales Revenue. The 'on account' term means that the service was provided but payment is to be received at a later date, usually as per the credit terms stated. In this case, '2/10, n/30' indicates that the customer can take a 2% discount if the bill is paid within 10 days; otherwise, the net (full) amount is due within 30 days. The appropriate choice from the options provided is therefore 'a. Accounts Receivable; Sales Revenue'.