Broadmor Industries Collected $7,500 from a Customer on Account

question 68

Multiple Choice

Broadmor Industries collected $7,500 from a customer on account.What journal entry will be prepared by Broadmor to record this transaction?

• A)Debit Cash and credit Accounts Receivable.
• B)Debit Cash and credit Service Revenue.
• C)Debit Accounts Receivable and credit Service Revenue.
• D)Debit Accounts Receivable and credit Cash.

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Definitions:

Subjective Impossibility

A situation where a party to a contract feels personally unable to perform their obligations, but the performance may still be possible by someone else.

Commercial Impracticability

A legal doctrine allowing parties to suspend or terminate their contractual obligations when unexpected events fundamentally alter the nature of the contract and performance becomes unfeasibly burdensome.

Substantial Performance

A concept in contract law where a party has completed enough of the contract to warrant payment, though some minor elements may still need to be finished.

Construction Industry

A sector of the economy focused on the planning, designing, and building of infrastructure and buildings.