Question: Cals Computer Servicing, Inc., a service company that provides installation services for computer programs, had a service revenue transaction in the amount of $ 120,000

Cal’s Computer Servicing, Inc., a service company that provides installation services for computer programs, had a service revenue transaction in the amount of $ 120,000 on May 31, 2015, with one customer. This customer chose to put the balance owed on its credit account with Cal’s, and it will pay off the balance in the following month. What is the effect of the revenue transaction on the accounting equation? What is the journal entry for this transaction?

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