A Company Receives Payment from One of Its Customers on August

Multiple Choice

A company receives payment from one of its customers on August 5 for services performed on July 21.Which of the following entries would be recorded if the company uses accrual basis accounting?

A) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 1,000 & \\\hline \text { Accounts Receivable } & & 1,000 \\\hline\end{array}$$
B) $\begin{array}{|l|r|c|}\hline \text { Accounts Payable } & 1,000 & \\\hline \text { Cash } & & 1,000 \\\hline\end{array}$

C) $\begin{array}{|l|r|l|}\hline \text { Cash } & 1,000 & \\\hline \text { Service Revenue } & & 1,000 \\\hline\end{array}$

D) $\begin{array}{|l|r|c|}\hline \text { Service Revenue } & 1,000 & \\\hline \text { Cash } & & 1,000 \\\hline\end{array}$