If Becky provided a service to a customer who has not yet paid, what type of journal entry is required?

When a service is provided to a customer who has not yet made a payment, the appropriate journal entry falls under the category of an accrual. An accrual accounting entry recognizes revenue at the time the service is performed, regardless of when the payment is received.

This method aligns with the revenue recognition principle, which states that revenue should be recognized when it is earned, not necessarily when cash is received. By recording the transaction as an accrual, Becky acknowledges the service provided and sets up a receivable that will be collected in the future, reflecting the true economic activity of the business.

In this case, an accrual will increase accounts receivable and recognize revenue at the same time, ensuring that the financial statements accurately reflect the company's performance for the reporting period. This approach provides a clear view of the company's revenues and obligations, which is essential for effective financial management.