A Company Provided $12,000 of Consulting Services on Account

question 140

Multiple Choice

A company provided $12,000 of consulting services on account.The customer promises payment in 30 days.Identify the journal entry below that properly records this transaction.

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Definitions:

Good Faith

Acting with honesty, fairness, and sincerity in legal or financial transactions, without intent to deceive or defraud.

Specific Performance

A legal remedy requiring a party to fulfill their contractual obligations, rather than just paying damages.

Stop Delivery

An order to halt the delivery process of goods, often issued when there is an issue with the order or if the goods are no longer needed.

Incidental Damages

Expenses reasonably associated with or related to the breach of a contract, beyond the direct damage costs.