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A law firm billed a client $2,100 for work performed in the current month. Which of the following general journal entries will the firm make to record this transaction?

1) Debit Accounts Receivable $2,100; Credit Service Revenue $2,100
2) Debit Service Revenue $2,100; Credit Accounts Receivable $2,100
3) Debit Cash $2,100; Credit Service Revenue $2,100
4) Debit Service Revenue $2,100; Credit Cash $2,100

1 Answer

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Final answer:

The correct general journal entry to record the $2,100 billed by the law firm for work performed in the current month is to debit Accounts Receivable $2,100 and credit Service Revenue $2,100.

Step-by-step explanation:

The correct general journal entry to record the $2,100 billed by the law firm for work performed in the current month would be:

  1. Debit Accounts Receivable $2,100;
  2. Credit Service Revenue $2,100

This entry increases the firm's accounts receivable (an asset) by $2,100, representing the amount to be collected from the client. It also recognizes the revenue earned from the services provided by crediting service revenue.

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