On May 1st, a company earns \$2,000 in revenue from a service provided on account. What is the correct journal entry to record this transaction?

• A. Debit Revenue \$2,000; Credit Accounts Receivable \$2,000.
• B. Debit Cash \$2,000; Credit Revenue \$2,000.
• C. Debit Accounts Receivable \$2,000; Credit Revenue \$2,000.
• D. Debit Revenue \$2,000; Credit Cash \$2,000.

Answer: (C)