Question

The receipt of $7,510 for services rendered was recorded as a debit to:

a) Cash
b) Accounts Receivable
c) Fees Earned
d) Leave it blank

Answer 1

The receipt of $7,510 for services rendered is recorded as a debit to Cash because it increases the Cash account, an asset, which is increased on the debit side.

Step-by-step explanation:

The receipt of $7,510 for services rendered should be recorded as a debit to Cash. In accounting, when a company receives money for services it has provided, it increases its Cash account, which is an asset. Since assets increase on the debit side, you would debit Cash. You would not debit Accounts Receivable as this would imply that you are still expecting to receive payment. Fees Earned, which represents revenue, would be credited, not debited, in this transaction.