Inge Industries received $3,000 from a customer for services rendered and not previously recorded. Inge's general journal entry to record this transaction will be:

A) Debit Services Revenue, credit Accounts Receivable.
B) Debit Cash, credit Accounts Payable.
C) Debit Cash, credit Accounts Receivable.
D) Debit Cash, credit Services Revenue.
E) Debit Accounts Payable, credit Services Revenue.

Question

Matthew Hemstock · Accepted Answer

Final Answer : D, Explanation :  When a company receives cash for services rendered, it increases its Cash account (debit) and recognizes the revenue earned (credit to Services Revenue). This reflects the inflow of cash and the earning of revenue simultaneously.

Definitions

Learning Objectives

Learning Objectives

Related questions