In this transaction, the debit is to Accounts Receivable for $9,500 because Speedy Limited is expecting to receive this amount from Laura Kent. The credit is to Service Revenue for $9,500 because Speedy Limited has earned this amount by completing the repair job.

Here's the breakdown:

1. Debit: Accounts Receivable (Laura Kent) $9,500
2. Credit: Service Revenue $9,500

This is based on the accrual accounting principle where revenues are recognized when earned, not when cash is received.

Question

In this transaction, the debit is to Accounts Receivable for $9,500 because Speedy Limited is expecting to receive this amount from Laura Kent. The credit is to Service Revenue for $9,500 because Speedy Limited has earned this amount by completing the repair job.

Here's the breakdown:

1. Debit: Accounts Receivable (Laura Kent) $9,500
2. Credit: Service Revenue $9,500

This is based on the accrual accounting principle where revenues are recognized when earned, not when cash is received.

Knowee AI · Accepted Answer

In this transaction, the debit is to Accounts Receivable for $9,500 because Speedy Limited is expecting to receive this amount from Laura Kent. The credit is to Service Revenue for $9,500 because Speedy Limited has earned this amount by completing the repair job.

Here's the breakdown:

1. Debit: Accounts Receivable (Laura Kent) $9,500
2. Credit: Service Revenue $9,500

This is based on the accrual accounting principle where revenues are recognized when earned, not when cash is received.

Speedy Limited completed a $9,500 repair job for a customer named Laura Kent and granted her credit for the whole job, as she has not paid yet. what is debit and what is credit>

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