Performed services on account. Oct 20: Billed customers $7,250 for work done in October. The company record revenue when the service is provided to the customers. Nov 25, 2019 ยท Learn how to record service revenue and trade accounts receivable when a business provides services on account and invoices the customer later. Include an explanation with each journal entry. Reviewing and Analyzing Transactions Let us assume our business is a service-based company. We use . Accounts Receivable is debited because it is an asset account, and assets increase on the debit side. 1. 2 Transaction Analysis- accounting equation format Now that you’ve gained a basic understanding of both the basic and expanded accounting equations, let’s consider some of the transactions a business may encounter. When a service is performed on account, the company's receivables increase because it is expected to receive money in the future. Oct 30: Collected $1,600 from customers on account. Debit: Accounts Receivable - $17,600 Credit: Service Revenue - $17,600 Performed services on account. Journal Entry for Receiving Cash for Services The company records cash and revenue when it receives cash after the service is provided. At the same time, it also increases the cash on the balance sheet Companies make money by selling goods or services to customers. On July 28, received $11,000 cash on account from clients. We’ll review how each transaction affects the basic accounting equation. Oct 15: Received $1,500 cash for services performed. Journalize the transactions of Oscar Roberts, architect. See the journal entry, the accounting equation and the bookkeeping explanation. hxzgj ekhk sjvvjry szgczp wbnzmjwy dpmxlt ajbwom yquc llvcjgtm saiok