Service Sale Transactions
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In any economic society, there are various service industries. There is not specific category that all types of services can fit into because the services offered are so broad. Accounting for service sale transactions vary widely. However, four methods of revenue recognition established by Generally Accepted Accounting Principles are useful for assessing revenue and costs of service sale transactions. The four methods are: the specific performance method, the completed performance, the proportional performance method and the collection method are the most widely accepted methods for all possible service sale transactions. The best way to handle any particular service sale transaction is to use the few written rules as guidelines and apply the logic in these rules to the situation.