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

question 53

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?

• A)\[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 1,500 & \\
• \hline \text { Accounts Receivable } & & 1,500 \\
• \hline
• \end{array}\]
• B)\[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 1,500 & \\
• \hline \text { Unearned Design Revenue } & & 1,500 \\
• \hline
• \end{array}\]
• C)\[\begin{array} { | l | r | r | }
• \hline \text { Accounts Receivable } & 1,500 & \\
• \hline \text { Unearned Design Revenue } & & 1,500 \\
• \hline
• \end{array}\]
• D)\[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 1,500 & \\
• \hline \text { Design Revenue } & & 1,500 \\
• \hline
• \end{array}\]
• E)\[\begin{array} { | l | r | r | }
• \hline \text { Accounts Receivable } & 1,500 & \\
• \hline \text { Cash } & & 1,500 \\
• \hline
• \end{array}\]

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Definitions:

Market Price

The price at which an asset or service is traded in the open market.

Treasury Bills

Short-term government securities issued at a discount from the face value and maturing at par, representing a form of borrowing by the government.

Real Rate Of Return

The annual percentage return realized on an investment, adjusted for changes in the price level due to inflation or other external factors.

Inflation

The speed at which the overall price level for goods and services increases, gradually diminishing the buying power.