When a service has been performed but no cash has been received, which of the following statements is true under the accrual method?
O The entry includes a credit to Revenue received in advance.
O The entry includes a debit to Accounts receivable.
O No journal is made.
O The entry includes a debit to Accounts payable.
Under the accrual method, when a service has been performed but no cash has been received, the entry includes a debit to Accounts receivable and a credit to Revenue. This reflects the recognition of revenue earned and the corresponding increase in the amount due from customers.
So, the correct statement is: O The entry includes a debit to Accounts receivable.
