Answer:
Accrual
Step-by-step explanation:
The are two accounting bases namely; cash basis and accrual basis.
In cash basis, sales and expenses are recorded only when cash is received and paid respectively.
In the accrual system, sales and expenses are recorded when the goods/services are delivered for sales and when the expense is incurred whether cash has been received/paid or not.
If the journal entry to record services provided to a customer on account was recorded with a debit to Accounts Receivable and a credit to Service Revenue, then the company is using the accrual basis as a receivable has been recognized pending the receipt of cash.