Question

selenna, inc., collects cash from customers in advance and from other customers after the sale. read the requirement. a. journalize selenna earning service revenue of $20,000 on account and then collecting $15,000 on account. (record debits first, then credits. exclude explanations from any journal entries.) start by recording selenna earning $20,000 of service revenue on account. date accounts debit credit 2024

Explanation:

Step1: Record service revenue on account

When service revenue is earned on account, we debit Accounts Receivable (an asset account that increases) and credit Service Revenue (a revenue account that increases).

Date	Accounts	Debit	Credit
	Service Revenue		$20,000

Step2: Record collection on account

When cash is collected on account, we debit Cash (an asset account that increases) and credit Accounts Receivable (an asset account that decreases).

Date	Accounts	Debit	Credit
	Accounts Receivable		$15,000

Answer:

For earning service revenue on account:

Date	Accounts	Debit	Credit
	Service Revenue		$20,000

For collecting on account:

Date	Accounts	Debit	Credit
	Accounts Receivable		$15,000