Final answer:
The Uptown Catering Company's provision of services on account results in recording a credit to the Service Revenue or Service Income account, signifying an increase in the company's earned income.
Step-by-step explanation:
The transaction would be recorded with a credit to Revenue or Service Income account.
In accrual accounting, when the Uptown Catering Company provides services on account, it means that they have delivered a service but have not yet received payment. Instead, they are expecting to receive payment at a later date. This is considered a credit transaction. According to the double-entry accounting system, every transaction affects at least two accounts, one account is debited and the other is credited.
In this case, the company’s Accounts Receivable account will be debited because it represents the money owed to the company by clients, which is an asset to the company that is increasing. Conversely, the Service Revenue or Revenues account will be credited because the provision of services has increased the company's income. This credit entry reflects the company's obligation to deliver services as well as its earned revenue from the provided services, which contributes to the equity of the business.