A company bills customers for services rendered on account. Which of the following is part of recording this transaction? a. Decrese service revenue b. Decrease cash c. Increase account receivable d. Increase Unearned revenue

When a company bills customers for services rendered on account, the correct part of recording this transaction is c. Increase Accounts Receivable. This is because the service has been provided, but cash has not yet been received. Instead, the company has a claim to cash in the future, which is represented as an account receivable—a current asset on the balance sheet.

Here is the journal entry that would be used to record this transaction:

1. Debit Accounts Receivable (to increase the asset, since the company now has a right to receive money from the customer) 2. Credit Service Revenue (to increase the revenue, as the service has been provided, and income is recognized)

The other options provided do not properly reflect the transaction:

a. Decrease service revenue - This is incorrect since providing services actually increases service revenue.

b. Decrease cash - This is incorrect because cash is not affected until the customer pays.

c Increase Unearned Revenue - This is incorrect given that unearned revenue is increased when a company receives payment for services that have not yet been provided.