When a Company Bills a Customer for $600 for Services

question 131

True/False

When a company bills a customer for $600 for services rendered, the journal entry to record this transaction will include a $600 debit to Services Revenue.

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Definitions:

Liability Account

A type of accounting record that shows the obligations or debts a company owes to others.

Withheld FICA Taxes

Taxes deducted from employees' paychecks to fund Social Security and Medicare, which employers also match.

Net Pay

The amount of money an employee takes home after deductions such as taxes and retirement contributions have been subtracted from their gross salary.

Voluntary Deductions

These are payroll deductions that an employee chooses to have withheld from their paycheck, such as for retirement plans, health insurance, or union dues.