Question 8:

A company provides services worth $8,000 to a customer on account.

Requirements:

1. Record the journal entry to recognize the provision of services.

2. Post the journal entry to the Accounts Receivable and Service Revenue accounts in the ledger.

3. Calculate the gross profit margin for this service.

4. Analyze how this transaction affects the company's income statement.

5. Discuss strategies for managing accounts receivable and ensuring timely payment from customers.