Respuesta :
Fleming corp. provided services on account. The transaction would be recorded with a credit to service revenue. The transaction will also be recorded on the accounts receivable ledger as well. Service revenue is an account used in accrual accounting that reports fee income that a company earns during a specific time frame. Accounts receivable is an account that shoes money that is owed to a company by its debtors.
Fleming corp. provided services on account. The transaction would be recorded with a credit to SERVICE REVENUE.
What is Service Revenue ?
- Service revenue is the income a company generates from providing a service.
- The amount is displayed at the top of an income statement and is added to the revenue from product earnings to show a company's total revenue during a specific time period.
Why Revenues are Credited ?
- Revenues cause owner's equity to increase.
- Since the normal balance for owner's equity is a credit balance, revenues must be recorded as a credit.
- At the end of the accounting year, the credit balances in the revenue accounts will be closed and transferred to the owner's capital account, thereby increasing owner's equity.
- It may be helpful to think of the accounting equation.
- Assets = Liabilities + Owner's Equity
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