Answer :
Childers service company provides services to customers totaling $3,000, for which it billed the customers. the transaction will be recorded as follows:
Accounts Receivable Dr. $3,000
To Service Revenue A/c $3,000
Accounts receivable or AR is the balance of money which is due to any firm for goods and services which have been delivered or used but not yet paid for by customers.
Accounts receivable are typically listed on the balance sheet as a current asset. AR is defined as any amount of money that is owed by customers for purchases made on credit.
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