Final answer:
To journalize the earning of service revenue on account, you would record it in the accounts receivable account and service revenue account. To journalize the earning of service revenue in cash, you would record it in the cash account and service revenue account.
Step-by-step explanation:
When earning service revenue on account, you would record it in the accounts receivable account under the assets section and in the service revenue account under the revenue section. This is because the customer hasn't paid yet and owes you the money. The journal entry would be:
- Accounts Receivable - Debit: to record the increase in accounts receivable
- Service Revenue - Credit: to record the increase in service revenue
When earning service revenue in cash, you would record it in the cash account under the assets section and in the service revenue account under the revenue section. This is because the customer has paid you the cash. The journal entry would be:
- Cash - Debit: to record the increase in cash
- Service Revenue - Credit: to record the increase in service revenu