A company performs $10,000 of services and issues an invoice to the customer using the accrual method what’s the correct entry to record the transaction?

Respuesta :

Based on the accrual method, the correct entry for $10,000 worth of services would be a debit to accounts receivable for $10,000 and a credit to Sales revenue for $10,000.

Why is this the correct entry?

The company has performed a certain service for a customer and hasn't been paid for it. The customer therefore owes the company which makes them an account receivable.

The $10,000 will be considered revenue by the company so they will credit the revenue account. Accounts Receivables are assets so this account will be debited.

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