Bush Consulting performed service for a client who could not pay immediately. Bush expected to collect the $3,900 the following month. A month later, Bush received $2,000 cash from the client.
1. Record the two transactions on the books of Bush Consulting. Include an explanation for each transaction.
2. Post to these T-accounts: Cash, Accounts Receivable, and Service Revenue. Compute each account balance and denote it as Bal.