Does Service Revenue Go Into Accounts Receivable?

Yes, service revenue typically goes into accounts receivable when services are provided on credit. When a company delivers services to a customer but does not receive immediate payment, it records the revenue generated from those services as accounts receivable. This represents the amount owed by the customer to the company for the services rendered. Accounts receivable is an asset on the balance sheet, reflecting the company’s expectation of receiving payment in the future. As the customer pays off the balance, the amount is then moved from accounts receivable to cash or another appropriate account.

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