Answer:
The correct answer is: A debit for $2,300 to accounts receivable (increase) and a credit for $2,300 to service revenue (decrease).
Explanation:
Services on account are given when an entity provides a service but the payment is invoiced to the customer at a later date. In the entity's book, there must be recorded a debit to accounts receivable for the amount for the service and a credit to service revenue for the same value.
Thus, if a company services customers on account for $2,300, in the general ledger a debit for $2,300 must be recorded to accounts receivable (increase) and a credit for $2,300 should be booked to service revenue (decrease).
