On January 15, 2016, Bravo Company billed a customer for $20,000 of services rendered to be...

Question:

On January 15, 2016, Bravo Company billed a customer for {eq}\$20,000 {/eq} of services rendered to be collected at a later date. Prepare the general journal entry (without explanation) needed.

Accounts Receivable:

Accounts Receivable is the amount of money that customers owe to the company for the goods or services that were purchased on credit. It is a current asset account that can be found in the Balance sheet, after the Cash account. Accounts Receivable arises from credit sales which the company offers to generate more revenue.

Answer and Explanation:

Debit Credit
Jan.15, 2016 Accounts Receivable 20,000
Service Revenue 20,000


Learn more about this topic:

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Accounts Receivable: Definition, Process & Examples

from Accounting 101: Financial Accounting

Chapter 7 / Lesson 1
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