Question

If a company has performed a service but will not receive payment until next month, the journal entry should include __________.

Answer 1

The correct answer is: a debit to Accounts Receivables and a credit to Services Revenue.

Step-by-step explanation:

Accounts Receivable is an accounting term used to refer to the money that is owed to a company by its customers. The customers, who can be individuals or corporations, are the debtors since they owe money for the goods or services provided by the company on credit.

Thus, if a company performed a service that is going to be paid next month, in the company's journal book, the accountant must record a debit to Accounts Receivable for the charge of the service and a credit to Services Revenue for the same amount.