J Wood Performed Carpentry Services for $7500

Multiple Choice

J. Wood performed carpentry services for $7500. He received cash of $5000 with the balance to be received within 28 days. Ignoring GST, the transaction is recorded as which of the following?

A) DR Cash $5000; DR Accounts receivable $2500; CR Income earned $7500
B) DR Income earned $7500; CR Cash $5000; CR Accounts payable $2500
C) DR Cash $7500; CR Equity $7500
D) DR Cash $5000; DR Equity $2500; CR Income earned $7500