Question

Brown Company provided services to a customer and immediately collected $1,900 cash. Show how to record the transaction to the T-accounts by completing the following sentence. Service Revenue would be

Answer 1

credited; right; debited; left

Step-by-step explanation:

The journal entry to record this transaction is shown below:

Cash A/c Dr $1,900

To Service revenue A/c $1,900

(Being the cash is collected)

It to be displayed in T accounts

For cash account

Cash

Debit side

Service revenue $1,900

For service revenue account

Service revenue

Credit side

Cash $1,900

So, the cash account would be debited and would be displayed on the left hand side while the service revenue would be credited and would be displayed on the right hand side