HH Consulting & Design Provided $800 of Consulting Work and $100

question 41

Multiple Choice

HH Consulting & Design provided $800 of consulting work and $100 of design work to the same client. It billed the client for the total amount and is expecting to collect from the customer next month. Which of the following general journal entries will HH Consulting & Design make to record this transaction?

• A)\[\begin{array} { | l | r | r | }
• \hline \text { Design Revenue } & 100 & \\
• \hline \text { Consulting Revenue } & 800 & \\
• \hline \text { Accounts Receivable } & & 900 \\
• \hline
• \end{array}\]
• B)\[\begin{array} { | l | r | r | }
• \hline \text { Accounts Payable } & 800 & \\
• \hline \text { Design Revenue } & & 100 \\
• \hline \text { Consulting Revenue } & & 800 \\
• \hline
• \end{array}\]
• C)\[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 900 & \\
• \hline \text { Consulting Revenue } & & 800 \\
• \hline \text { Design Revenue } & & 100 \\
• \hline
• \end{array}\]
• D)\[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 900 & \\
• \hline \text { Design Revenue } & & 100 \\
• \hline \text { Consulting Revenue } & & 800 \\
• \hline
• \end{array}\]
• E)\[\begin{array} { | l | r | r | }
• \hline \text { Accounts Receivable } & 900 & \\
• \hline \text { Consulting Revenue } & & 800 \\
• \hline \text { Design Revenue } & & 100 \\
• \hline
• \end{array}\]

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Definitions:

Profit-maximizing Price

The price at which a company can sell its product to achieve the highest possible profit.

Salads and Steaks

A metaphor representing a range of consumer choices in the market, emphasizing the diversity in preference and consumption.

Tying Strategy

A business practice where a seller requires the buyer to purchase another one of its products as a condition for buying a desired product, often scrutinized for anti-competitive behavior.

Additional Profit

The profit gained in addition to the existing profit from business operations or investments.