Comments on: The journal entry to record the sale of services on credit should include:? http://www.topcreditresources.com/credit-services/the-journal-entry-to-record-the-sale-of-services-on-credit-should-include Tools and information about Credit, Loans, and Debt Tue, 03 Aug 2010 00:07:59 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anthony http://www.topcreditresources.com/credit-services/the-journal-entry-to-record-the-sale-of-services-on-credit-should-include/comment-page-1#comment-1344 Anthony Tue, 10 Nov 2009 15:05:59 +0000 http://www.topcreditresources.com/credit-services/the-journal-entry-to-record-the-sale-of-services-on-credit-should-include#comment-1344 For all the answers given, D) is the best option. if you provide a service on credit, account receivable has to be debited and you then credit the corresponding account and in this case because you are providing service, you charge fees thus, you credit fees income. to comment on the rest of the options: A = you definately cannot credit capital if you provide service on credit. that makes this option wrong. B = the service was provided on credit so you cannot debit cash and it is wrong to credit account receivable. C = it is wrong to debit fees income, just like turnover of a company, when you provide a service, you rather credit it and and it is wrong to credit account receivable.<br><b>References : </b><br> For all the answers given, D) is the best option. if you provide a service on credit, account receivable has to be debited and you then credit the corresponding account and in this case because you are providing service, you charge fees thus, you credit fees income.

to comment on the rest of the options:
A = you definately cannot credit capital if you provide service on credit. that makes this option wrong.
B = the service was provided on credit so you cannot debit cash and it is wrong to credit account receivable.
C = it is wrong to debit fees income, just like turnover of a company, when you provide a service, you rather credit it and and it is wrong to credit account receivable.
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]]> By: Dennis http://www.topcreditresources.com/credit-services/the-journal-entry-to-record-the-sale-of-services-on-credit-should-include/comment-page-1#comment-1343 Dennis Tue, 10 Nov 2009 14:49:59 +0000 http://www.topcreditresources.com/credit-services/the-journal-entry-to-record-the-sale-of-services-on-credit-should-include#comment-1343 A is correct!<br><b>References : </b><br> A is correct!
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