The fact that Carrie billed her legal clients an amount of $6,000 for legal work means that the transaction will cause a $6,000 increase in assets and revenues.
<h3>What is the effect of service revenue?</h3>
When a person receives service revenue like Carrie did when she billed her clients, this would increase the revenue amounts to the company.
Revenues would therefore increase which means that equity increases as well because revenues are the main source of net income, which become retained earnings, which is an equity account.
When equity increases, assets will have to increase which will happen here because Carrie will treat her clients as Accounts receivable which is considered an asset.
In conclusion, option B is correct.
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