Question

ABC Co. performs $200 of services for a customer, but does not get paid right away. Demonstrate how ABC Co. would record this transaction in the accounting equation by completing the following sentence. Note: enter one answer for each blank. ABC Co. would increase the Accounts (Payable/Receivable) account and increase the (Cash/Revenue) account in the accounting equation.?

Answer 1

Answer:

Account receivable and revenue account

Explanation:

Since it is given that

The service was performed on the account so the journal entry to record this transaction is shown below:

Account receivable A/c Dr $200

             To Service revenue A/c $200

(Being the service is performed recorded)

Both accounts are increases that means the account receivable and the service revenue is increased for $200 each