Final answer:
The adjusting entry to record revenue for the services for which the seller has performed its obligation but has not yet been billed the customer requires a debit to Accounts Receivable and a credit to Service Revenue. The option (A) is correct.
Step-by-step explanation:
The adjusting entry to record revenue for the services for which the seller has performed its obligation but has not yet been billed the customer requires a debit to Accounts Receivable and a credit to Service Revenue.
This entry recognizes the revenue earned by the seller even though the customer has not yet been billed. The debit to Accounts Receivable represents the increase in the amount owed by the customer, while the credit to Service Revenue represents the revenue earned by the seller. Therefore, option (A) is correct.
This question is not complete, Here I am attaching the complete question:
The adjusting entry to record revenue for the services for which the seller has performed its obligation but has not yet been billed the customer requires _____.
A) A debit to Accounts Receivable and a credit to Service Revenue.
B) A debit to Unearned Revenue and a credit to Service Revenue.
C) A debit to Service Revenue and a credit to Accounts Payable.
D) A debit to Service Revenue and a credit to Accrued Revenue.