If a business completed a $12,000 worth of services to be received in 30 days, is this a credit or debit?

Question

If a business completed a $12,000 worth of services to be received in 30 days, is this a credit or debit on a trial balance?

Answer 1

If you've provided services worth $12k and the customer has not paid you, your entry would be:
Dr A/cs receivable $12k (B/S item)
Cr Income from svcs rendered $12k (P/L item)

So coming to your question, the AR would be a debit in your TB and the income would be a credit in your TB.

30 days later when the customer pays up, your entry would be:
Dr Cash $12k
Cr A/cs Receivable $12k

With this entry, you'd have closed off this customer's a/c to zero, which is logical since he now doesn't owe you anything.

Answer 2

This would be a credit pending. Though you would have credit due it still stands at a debt untill monies are received in full. If not paid, it would then become a loss as per IRS reporting of taxes.

Answer 3

It's an account receivable therefore a debit.