On October 15th, a company earns \$4,000 in revenue from a service provided on account. What is the correct journal entry to record this transaction?

• A. Debit Accounts Receivable \$4,000; Credit Revenue \$4,000.
• B. Debit Cash \$4,000; Credit Revenue \$4,000.
• C. Debit Revenue \$4,000; Credit Accounts Receivable \$4,000.
• D. Debit Revenue \$4,000; Credit Cash \$4,000.

Answer: (A)