Motion Unlimited performed service for a client who could not pay immediately. Motion expected to collect the $4,000 the following month. A month later, Motion received $2,500 cash from the client.
1. Record the two transactions on the books of Motion Unlimited. Include an explanation for each transaction.
2. Open these T-accounts: Cash, Accounts Receivable, and Service Revenue. Post to all three accounts. Compute each account balance and denote as Bal.