On Jan 1, a business provided legal services to a client and billed the client $5,000. The client promised to pay the business in one month. Which journal entry should the business record on Jan 1?

Group of answer choices

Debit Accounts Receivable for $5,000 and credit Service Revenue for $5,000.

Debit Cash for $5,000 and credit Service Revenue for $5,000.

Debit Cash for $5,000 and credit Retained Earnings for $5,000.

Debit Accounts Payable for $5,000 and credit Service Revenue for $5,000.