Question

On May 1, a business provided legal services to a client and billed the dient $3,200 The client promised to pay the business in one month. Which journal entry should the business record on Ma

A. Debit Accounts Receivable for $3,200 and credit Service Revenue for 53.200
B. Debit Cash for $3,200 and credit Retained Earnings for $3,200.
C. Debit Cash for $3,200 and credit Service Revenue for $3,200.
D. Debit Accounts Payable for $3.200 and credit Service Revenue for $3.200

Answer 1

The business should record a journal entry A. debiting Accounts Receivable and crediting Service Revenue for $3,200.

Step-by-step explanation:

The correct journal entry for the business to record the transaction would be:

Debit Accounts Receivable for $3,200

Credit Service Revenue for $3,200

When the business provided legal services and billed the client $3,200, Accounts Receivable is debited (increased) because the business has an account receivable from the client. At the same time, Service Revenue is credited (increased) because the business has earned revenue by providing the legal services.