Trimble Graphic Design Receives $1,500 from a Client Billed in a Previous

question 94

Multiple Choice

Trimble Graphic Design receives $1,500 from a client billed in a previous month for services provided.Which of the following general journal entries will Trimble Graphic Design make to record this transaction?

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Definitions:

Non-volume Driven

Pertains to costs that do not change with the level of production or service volume.

Product Costing System

An accounting methodology used to ascertain the total production cost of a product, by adding together the costs of direct materials, direct labor, and manufacturing overheads.

Bids Won

The number of proposals or offers accepted by clients or customers, indicating successful sales or project initiations.

Activity-based System Accuracy

Activity-based system accuracy refers to the precision with which an activity-based costing system allocates overhead costs to products or services based on the actual activities undertaken.